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SashulF [63]
3 years ago
14

During a recent fiscal year, creek company reported pretax income of $117,000, a contribution margin ratio of 20% and total cont

ribution margin of $320,000. total variable costs must have been:
Business
1 answer:
Aleonysh [2.5K]3 years ago
8 0

To solve this problem, we use the formula in calculating for the total variable cost (COGS):

Revenue - COGS - SG&A = Pretax profits 

 

where SG & A is calculated as:
SG & A = (Contribution - Prextax income) 
<span>SG & A = ($320,000 - $117,000)
SG & A= $275,000 </span>

 

Calculating for revenue using the margin ratio:
Contribution margin/Revenue = Contribution Margin Ratio 
Revenue = Contribution Margin/Contribution Margin Ratio 
Revenue = $320,000/.20

Revenue = $1.6m 

Going back to the 1st formula:
Revenue - COGS - SG&A = Pretax profits 
1.6m - COGS - 275k = 117k 
COGS = $1.6m - $117k - $275k

<span>COGS = $1.208 million</span>

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In the development of a marketing plan, blending the marketing mix would not generally involve:_____.
KATRIN_1 [288]

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3 0
2 years ago
During the year, Belyk Paving Co. had sales of $2,384,000. Cost of goods sold, administrative and selling expenses, and deprecia
Zina [86]

Answer:

(a) Income Statement

                                  Belyk Paving Co.

                    Income statement for the year xxxx

Sales                                                      $2,384,000

Cost of goods sold                               $1,441,000

Gross Profit                                            $943,000

Administrative and selling expenses   $436,600

Depreciation expense                           $491,600

Operating Income                                  14,800

Interest expense                                    $216,600

Income before Tax                                ($201,8000)

Tax rate 35%                                          <u> $0             </u>

Net Loss                                                  <u>($201,800)</u>

(b) operating Cash flow

Net Loss                                                       ($201,800)

Add: Non cash Expenses (Depreciation)   <u> $491,600</u>

Cash flow from operating activities            <u> $289,800 </u>

6 0
3 years ago
On January 1, Puckett Company paid $1.6 million for 50,000 shares of Harrison's voting common stock, which represents a 40 perce
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Answer:  the correct answer is $1,724,000

Explanation: $560,000 x 0.40= 224,000  (net income times percentage of Harrison's voting common stock)

$2/ share x 50,000= (100,000)  (the company paid 2$ dollars per share and there are 50000 shares)

1.6 million + 224,000 - 100,000= $1,724,000

6 0
3 years ago
places by the sea have (cooler/warmer/wetter) summer and (drier/cooler/warmer) winters than places inland.​
LuckyWell [14K]

Answer:

Temperature usually decreases by 1°C for every 100 metres in altitude. Distance from the sea - Oceans heat up and cool down much more slowly than land. This means that coastal locations tend to be cooler in summer and warmer in winter than places inland at the same latitude and altitude

Explanation:

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4 0
3 years ago
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