1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ann [662]
3 years ago
6

Sandhill Company reports the following operating results for the month of August: sales $382,500 (units 5,100), variable costs $

245,000, and fixed costs $98,000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 16% with no change in total variable costs or units sold.
2. Reduce variable costs to 59% of sales.
Compute the net income to be earned under each alternative.
1. Net Income
$enter a dollar amount
2. Net Income
$enter a dollar amount
Which course of action will produce the higher net income? select an option
Business
1 answer:
Vesnalui [34]3 years ago
3 0

Answer:

Results are below.

Explanation:

Giving the following information:

Sales $382,500 (units 5,100 $75 per unit)

variable costs $245,000 (48.04 per unit)

fixed costs $98,000.

Option 1:

Increase selling price by 16%.

New selling price= 75*1.16= 87

Sales= 5,100*87= 443,700

variable costs= (245,000)

fixed costs= (98,000)

Net income= 100,700

2. Reduce variable costs to 59% of sales.

Contribution margin= (382,500*0.41)= 156,825

fixed costs= (98,000)

Net income= 58,825

T<u>he most profitable option is the first one.</u>

You might be interested in
John occasionally borrows the car of his friend, Sophie. Sophie has a PAP with liability limits of 100/300/50. John also has a P
Tamiku [17]

Answer:

Sophie's policy will pay up to its maximum amount of $100,000 and John's policy should pay the rest ($200,000).

Explanation:

Personal Auto Policies (PAP) provide coverage in case of injury to the insured or other third parties involved in a car accident. PAP policies provide coverage even when you occasional borrow a car. If you regularly drive someone else's car you need extended non owned liability coverage endorsement.

3 0
3 years ago
Trevor Williams’ bank calculates interest daily. At an APR of 3%, how much simple interest does $2,000 earn in twelve days?
pishuonlain [190]
The answer is $1.97. 

6 0
3 years ago
Read 2 more answers
A learning organization is an organization that actively creates, acquires, and transfers knowledge within itself and is able to
Kipish [7]

Answer:

As it is said in the text, Learning Organizations are organization that enables people to build their knowledge and capacity.

Explanation:

A learning organization creates in people more value around their skills and motivates them. They are essential and the key to success. In order to build them there’s a huge need of having a training plan so people in it keep on studying and challenging theirselves. To track these trainings there must be an evaluation and monitoring plan so that we can be aware of the changes needed.

7 0
3 years ago
In a small, closed economy, national income (GDP) is $400.00 million for the current year. Individuals have spent $150.00 millio
emmasim [6.3K]

Answer: $100 million

Explanation:

National Income (GDP) for a close nation is calculated as:

= Consumption + Investment + Government spending

Making investment the subject would give us:

Investment = GDP - Consumption - Government spending

= 400 - 150 - 150

= $100 million

3 0
3 years ago
The purpose of a lease is _____.
REY [17]
The purpose of a lease is a rent. When you "lease" something, that's the business term of renting something ;-)
7 0
3 years ago
Other questions:
  • When a firm changes its capital structure by issuing or retiring debt, for example, this change alters the firms unlevered free
    9·1 answer
  • Unemployment rates have been higher in many european countries in recent decades than in the united states. is the main reason f
    5·1 answer
  • Why do housing lenders charge more interest up front?
    11·1 answer
  • On March 18, James Smith purchased $5,000 of furniture from Home Furnishings on account. The cost of the goods was $3,000. On Ma
    11·1 answer
  • Everett, Miguel, and Ramona are partners, sharing income 1:2:3. After selling all of the assets for cash, dividing losses on rea
    11·1 answer
  • The Securities Investor Protection Corporation is a government agency charged with administering the liquidation of failed secur
    10·1 answer
  • Norton Corporation received cash from issuing 10-year $200,000 bonds at face value. Interest of $10,000 is paid annually to the
    6·1 answer
  • The net income that firm earns can either be paid out to shareholders asas ____ or or can be reinvested in the company as ____ .
    14·1 answer
  • Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After
    5·1 answer
  • Write about why it is important for world leaders to make just decisions for their people and to treat neighboring countries wit
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!