All categories

2 years ago

Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October.

Business

1 answer:

Dafna1 [17]2 years ago

8 0

Answer:

d. $300

Explanation:

Calculation for what its net operating income should be closest to

Using this formula

First step is to calculate the contribution margin per unit using this formula

Contribution margin per unit= Contribution margin ÷ Number of units

Let plug in the formula

Contribution margin per unit= $48,000 ÷ 4,000 units

Contribution margin per unit= $12

Second step is to calculate the contribution margin

Contribution margin = 3,500 units × $12

Contribution margin = $42,000

Now let calculate the net operating income using this formula

Net operating income = Sales - Variable cost - Fixed expenses

Let plug in the formula

Net operating income= $42,000 - $41,700

Net operating income= $300

Therefore its net operating income should be closest to $300

You might be interested in

Multiple Choice Best Buy decided to bring in Hubert Joly as CEO to replace Brian Dunn. Amazon has many strategically located dis

Fynjy0 [20]

Complete question reads;

Which of the following is not a reason Best Buy has had a hard time competing with Amazon? Multiple Choice

a. Best Buy decided to bring in Hubert Joly as CEO to replace Brian Dunn.

b. Amazon has many strategically located distribution centers across the United States.

c. Best Buy had significant expenses that did not help improve sales.

d. Amazon has a deep supply of products to draw from.

e. Best Buy has faced some key leadership challenges.

Answer:

Explanation:

Noteworthy is the fact that Hubert Joly's arrival into Best Buy was indeed a blessing to the company because within a year after he came in 2012, the company's stock value more than doubled in 2013.

He further improved the company's customer interactions, plus greater price competitiveness during his leadership.

6 0

3 years ago

Having in mind the pandemic, should a company reduce its leverage in order to add value to its shareholders? and why?

tensa zangetsu [6.8K]

Answer:

No, taking into account the pandemic, companies should not reduce their leverage, as this would make it very difficult for small and medium investors to invest in a context of lack of income and shortage of available circulating money.

Therefore, leverage implies the possibility for investors to access the necessary funds to be able to invest their money, without the need to dispose of their savings or the money they use for essential activities.

8 0

3 years ago

A grocery store has three open checkout lanes. On average, 45 shoppers arrive at these lanes per hour. The coefficient of variat

jonny [76]

Answer:

The percentage decrease in utilization is 83.33%

Explanation:

According to the data, we have the following:

Coefficient of variance, m = 3

Arrival rate, ra = 45 per hour

Service rate, re = 18 per hour per lane

Therefore, in order to calculate the percentage decrease in utilization when one more checkout lane is added to the system, we have to use the following formula:

So, percentage decrease in utilization = ra / (m.re)

= 45 / (3*18) = 0.833

The percentage decrease in utilization is 83.33%

3 0

3 years ago

To create strong partnering relationships, marketing channel members must develop mutual trust, openly communicate, have common

Mariulka [41]

It is important that members of marketing channel develop the willingness to invest in each other's success to create strong partnering relationships.

<h3>Who are members of marketing channel?</h3>

In a marketing channel, these member are the individuals that help the producer to channel their products to consumers.

The members of marketing channel includes a wholesales, retailers, agent etc.

In conclusion, these member must always be willing to invest in each other's success to create strong partnering relationships.