All categories

3 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]3 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

Whispering enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Whispering will receive a pa

777dan777 [17]

Answer:

Transaction price of the arrangement for Blair Biotech is $10,000,000.

2) Journal Entries for Blair.

Date Accounts Debit$ Credit$

12/20/2017 Accounts Receivable $10,000,000

License Revenue $10,000,000

01/15/2018 Cash $10,000,000

Accounts Receivable $10,000,000

Explanation:

8 0

3 years ago

(Scenario 8-4) Within various sections of the ____ portion of its advertising plan, American Express explains how and why Visa h

KatRina [158]

Answer: situation analysis

Explanation:

6 0

3 years ago

Read 2 more answers

________is the american economist and professor who wrote the globalization of markets, in which he argued that international ma

PtichkaEL [24]

Answer:

The answer is Theodore Levitt

5 0

2 years ago

Which of the following statement best describes the difference between a trade surplus and a trade deficit?. A. A trade surplus

vredina [299]

A. A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports.

7 0

3 years ago

Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses a

Mashcka [7]

Answer:

Total allocated costs= $63,221.7

Explanation:

First, we need to calculate the allocation rates based on the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Salaries= 30,000/2,700= $11.11 per number of employees

Depreciation= 20,500/204,000= $0.10 per cost of goods sold dollar

Advertising= 41,500/804,000= $0.052 per net sales dollar

Now, we can allocate costs to Grinding:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Salaries= 11.11*1,620= 17,998.2

Depreciation= 0.10*204,000= 20,400

Advertising= 0.052*477,375= 24,823.5

Total allocated costs= $63,221.7

7 0

3 years ago