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
e-lub [12.9K]
3 years ago
8

Management anticipates fixed costs of $72,500 and variable costs equal to 40% of sales. What will income equal if sales are $325

,000?
Business
1 answer:
abruzzese [7]3 years ago
6 0

Answer: $122500

Explanation:

The income if sales are $325,000 will be calculated as thus:

Sales = $325,000

Less: Variable cost = $130000

Contribution margin = $195,000

Less: Fixed cost = $72,500

Income before tax = $195,000 - $72500 = $122500

Note:

Variable cost = 40% × Sales

= 40% × $325000

= 0.4 × $325,000

= $130000

Contribution margin = 60% × Sales

= 60% × $325000

= 0.6 × $325,000

= $195000

You might be interested in
Blain Company has $10,000 of accounts receivable that are current, $5,000 that are between 0 and 30 days past due, $3,000 that a
True [87]

Answer:

d. $1050.

Explanation:

We multiply each account balance by the expected uncollectible amount and then addd them to get the expected total for doutful accounts

\left[\begin{array}{cccc}Date&Amount&Expected&uncollectible\\$not due&10000&0.02&200\\$up to 30&5000&0.05&250\\$up to 60&3000&0.1&300\\$more than 61&800&0.5&400\\&&Total&1150\\\end{array}\right]

Balance of the allowance account:  100

The expense will be the adjustment made on the allowance to get the expected balance of 1,150

1,150 - 100 = 1,050

we increase the allowance bu 1,050 to get our expected uncollectible fro maccounts receivable agaisnt the bad debt expense ofthe period.

8 0
3 years ago
Even though many valuable, rare, and inimitable resources were generated at Xerox's Palo Alto Research Center (PARC), the manage
Virty [35]

Answer:

A firm must be effectively organized to capture value. A firm has to ensure it has a properly ongoing work system where everything balances. Proper marketing and advert, viability in product quality, organized administrative and technical structuring, analysis on probable customer base etc., these and many more factors have to be critically looked into and worked on to gain competitive advantage. What is the competition doing right that we are missing? who are our competition? Why are they the peoples favorite? How can we become the peoples favorite? Questions of these sort if worked on and implemented, will facilitate effective organizational growth.

8 0
3 years ago
Read 2 more answers
A sole priorietorship is a business that is owned by a number of people?<br><br> True or false?
miskamm [114]
The answer is "false"
3 0
3 years ago
At December 31, Idaho Company had the following ending account balances:
telo118 [61]

Answer:

Balance of Stockholder's Equity at December 31 is $1,910,000.

Explanation:

This will appear as follows

Idaho Company

<u>Details                                                                         $      </u>

Stockholder's Equity:

Common Stock                                                       525,000

Preferred Stock                                                      500,000

Additional Paid-In Cap. - Common Stock             625,000

Additional Paid-In Cap. - Preferred Stock              50,000

Treasury Stock                                                        (40,000 )

Retained Earnings                                                <u>  250,000  </u>

Balance at December 31                                    <u>   1,910,000  </u>

5 0
3 years ago
During 2017 sales on account were $390,000 and collections on account were $230,000. also, during 2017 the company wrote off $22
Scilla [17]

Answer:

[(Accounts receivable at the beginning of the year + $138,000) - $144,000] - cash realizable value at the beginning of the year

Explanation: The question is incomplete but just apply the missing figures: [(Accounts receivable at the beginning of the year + Sales on account - Collections on account - write off) - bad debt] - cash realizable value at the beginning of the year

[(Accounts receivable at the beginning of the year + $390,000 - $230,000 - $22,000) - $144,000] - cash realizable value at the beginning of the year

5 0
3 years ago
Read 2 more answers
Other questions:
  • When a buyer acquires a property having an existing mortgage loan, a decision must be made as to whether or not the subsequent o
    10·1 answer
  • The ethical question is whether apple ought to contract (through suppliers) fifteen-year-olds to work on factory floors. is the
    13·1 answer
  • Which of the following securities could NOT have any benefits for diversification with your investment portfolio? a.Treasury bil
    6·1 answer
  • This problem has been solved! See the answer In September of 1998, your father purchased a Michael Jordan basketball card for $0
    5·1 answer
  • Glacial Company estimates that variable costs will be 53.1% of sales, and fixed costs will total $710,000. The selling price of
    6·1 answer
  • A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain
    7·1 answer
  • LO 1.3The Certified Management Accountant (CMA) certification:
    14·1 answer
  • A principle purpose of the market model is to show how equilibrium price and quantity will change as a result of some 'exogenous
    8·1 answer
  • Bon Nebo Co. sold 25,000 annual subscriptions of Bjorn 20XX for $85 during December 2014. These new subscribers will receive mon
    6·1 answer
  • You own a bond that pays $64 in interest annually. The face value is $1,000 and the current market price is $1,062.50. The bond
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!