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Maurinko [17]
3 years ago
7

After conducting a market research study, Magnificent Manufacturing decided to produce a new interior door to complement its ext

erior door line. It is estimated that the new interior door can be sold at a target price of $250. The annual target sales volume for interior doors is 28,000. Magnificent has target operating income of 40% of sales. What is the target operating income?
a. $2,800,000
b. $4,200,000
c. $7,000,000
d. $9,800,000
Business
1 answer:
Lera25 [3.4K]3 years ago
8 0

Answer:

Operating income= $2,800,000

Explanation:

Giving the following information:

Selling price= $250

Units to be sold= 28,000

Target operating income= 40% of sales

<u> First, we need to calculate the total sales:</u>

<u></u>

Total sales= 250*28,000

Total sales= $7,000,000

<u>Now, the target operating income:</u>

Operating income= 0.4*7,000,000

Operating income= $2,800,000

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Answer:

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For computing the earning per share, we need to apply the formula of Earning per share which is shown below:

Earning per share = (Net income - Dividends paid to preferred shareholders) ÷ average common shares

= ($36,000 - $10,000) ÷ $20,000 shares

= $1.3 per share

The other items which are mentioned in the question are not relevant. Kindly ignored it.

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3 years ago
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Answer:

The correct answer is loss of $155,000.

Explanation:

According to the scenario, computation of the given data are as follow:-

West division’s net operating income if it’s continue = ($15,000 - $75,000)

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We can calculate the net operating income if west discontinue by using following formula:-

West division’s net operating income if it’s discontinue = Net Operating Income - Allocated Common Corporate Cost

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5 0
3 years ago
Read 2 more answers
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madreJ [45]

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an indirect cost is one that is not directly associated with an activity.

The determination of depreciation as a direct or indirect cost depends upon what it is associated with. For example carpet cleaning is an Indirect costs because it's precise benefits to a specific project is difficult or impossible to trace Also,since depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset then cost of the depreciation on the carpet cleaning is a Fixed Indirect Cost.

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<h3>What is a Labor?</h3>

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