Suppose you come up with a wonderful new invention, and after borrowing as much as you can from a bank, you believe that additional capital is needed to make the invention marketable. Your small new company would be most likely to find additional capital from the:
A. bond credit channel.
B. equity credit channel.
C. stock credit channel.
D. venture capital credit channel.

Answers

Answer 1

Answer:

B. equity credit channel

Explanation:

Investment banks specialize in creating shares of stock for a company to raise funds through selling equity.

Answer 2

The credit channel mechanism of the monetary policy describes the theory that a central bank's policy changes, explained further.

What are Credit Channels?

The credit channel mechanism of monetary policy reflects the hypothesis that changes in a central bank's policies impact the quantity of credit available to enterprises and consumers for purchases, hence affecting the real economy.

When someone comes up with new innovation and wants to sell it for as much money as possible by borrowing as much money as possible from a bank. The equity credit Channel is the most likely source of extra financing for your modest new organization.

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Related Questions

Decide which statement best reflects a proper attitude on the first day of work.
a.
I should point out other workers who are not properly dressed.
b.
I should question business practices shown to me.
c.
I should listen closely when people talk to me.
d.
I should defend my ideas with rigor

Answers

The correct statement that best reflects a proper attitude on the first day of work is: c. I should listen closely when people talk to me.

What is attitude?

Attitude can be defined as the way a person or an individual behave. A person can tend to have a negative or positive attitudes toward others based on the fact people are different in their own ways and tend to have different way in which they behave which implies that our attitude are not the same.

An employee that just resume to an office for the first time need to display a proper attitude because first impression last longer. Based on this it is advisable a person who just resume to an office should pay attention to details and should listen closely when people talk to him/her.

Therefore the correct option is C.

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Determine the net income (loss) for the period.

a.Net income $1,715
b.Net loss $1,715
c.Net loss $2,704
d.Net income $2,704

Determine the net income (loss) for the period.a.Net income $1,715b.Net loss $1,715c.Net loss $2,704d.Net

Answers

Net Income of Stockton Company for the period is $ 2,704 . Hence option d is correct.

What is Net Income ?

Net income, also known as total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales, in the context of business and accounting refers to an entity's income less cost of goods sold, expenses, depreciation and amortization, interest, and taxes for a given accounting period

It has also been described as the net growth in shareholders' equity that results from a company's operations. It is calculated as the residual of all revenues and gains less all expenses and losses for the period.

Contrary to gross income, which merely deducts the cost of products sold from revenue, this is not the same thing.

Calculation For the Net Income \(Net Income = Received Fees - wages - rent - Utilities Exp - Depreciation \\ = 6,412 - 2,184 - 701 - 439 - 274\\ = $ 2,704\)

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1. How do customers judge the quality of a supermarket? 2. Indicate how and why each of these factors is important to the successful operation of a supermarket: a. Customer satisfaction b. Forecasting c. Capacity planning d. Location e. Inventory management f. Layout of the store g. Scheduling 3. What are some of the ways Wegmans uses technology to gain an edge over its competition?

Answers

Answer:

1. How do customers judge the quality of a supermarket?

They judge the quality of a supermarket depending on their values and most urgent needs.

Customers who value quality, and even luxury, will say that a good supermarket is one that offers high quality products.

Customers who value price, will prefer a low-cost supermarket.

2. Indicate how and why each of these factors is important to the successful operation of a supermarket:

a. Customer satisfaction - a very important factor because it determines how well the supermarket is serving its customers.

b. Forecasting - the supermarket needs to forecast all sorts of things, from, sales forecasts, to profit forescasts, to costs forecasts.

c. Capacity planning - the supermarket needs to know what it is actually able to do, and what projects it can embark on, for this, it needs to do a lot of capacity planning.

d. Location - Location is extremely important for a supermarket. It determines a large part of the customer demand because customers prefer supermarkets to be close to where they live.

e. Inventory management - Supermarkets need to manage inventories carefully, specially because a lot of the goods that a supermarket sells, are perishables.

f. Layout of the store - The Supermakert needs to be careful when determining the layout of the store. Customers want a layout that is easy to navigate, and where goods are placed according to a coherent classification.

g. Scheduling - The supermarket needs to establish a convenient schedule for its customer base.

What are some of the ways Wegmans uses technology to gain an edge over its competition?

Wegmans is characterized for its early adoption of ground-breaking technologies. For example, recently Wegmans developed a mobile application to assist blind shoppers.

5.6 Last month Quick Industries produced 900 units. This month they produced 1,264 units. What is the rate of change in production? a. 29.8% b. 32.8% c. 40.4% d. 60% ​

Answers

Answer: C. 40.4%

Explanation:

To find the rate of change in production, we can use the following formula:

Rate of change = (New value - Old value) / Old value * 100

Where,

Old value = Production of last month = 900

New value = Production of this month = 1264

Substituting the values in the formula,

Rate of change = (1264 - 900) / 900 * 100= 364 / 900 * 100= 0.404 * 100= 40.4%

Therefore, the rate of change in production is 40.4%, which is an option (c). I hope that this answer has helped you!

Answer:

The correct answer is C.

Explanation:

The rate of change in production is: (1264 - 900) / 900 = 0.404 or 40.4%. So, the correct answer is c. 40.4%

Molly Ellen, bookkeeper for Keystone Company, forgot to send in the payroll taxes due on April 15. She sent the payment November 8. The IRS sent her a penalty charge of 9.20% simple interest on the unpaid taxes of $4,000. Calculate the penalty. (Remember that the government uses exact interest.) (Use Days in a year table.)

Answers

The penalty charge is $728.04.

To find the penalty charge in the given scenario where Molly Ellen forgot to send the payroll taxes due on April 15th and sent the payment on November 8th, we will follow these steps:Calculate the days from April 15 to November 8 which is 207 daysCompute the exact interest on the unpaid taxes using the exact interest formula: I=P*R*T/100I: Exact interestP: Unpaid taxes ($4,000)R: Rate (9.20%)T: Time in years (207 days/365 days = 0.57 years)

Calculate the penalty by subtracting the unpaid taxes from the total amount due including the interestPenalty = Total amount due - Unpaid taxesGiven that the unpaid taxes were $4,000, and the IRS sent a penalty charge of 9.20% simple interest on the unpaid taxes. Using the above information, we will calculate the penalty as follows:

Days from April 15th to November 8th is 207 days.The exact interest formula is I=P*R*T/100, where I is the exact interest, P is the principal, R is the rate and T is the time in years.I = (4000 * 9.20 * 207)/100 * 365 = $728.04The total amount due including the interest is $4,728.04.Penalty = Total amount due - Unpaid taxesPenalty = $4728.04 - $4000Penalty = $728.04Therefore, the penalty charge is $728.04.

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The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:
• Sales at $550,000, all for cash.
Merchandise inventory on November 30 was $300,000.
. The cash balance at December 1 was $25,000.
Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash,
.
Budgeted depreciation for December is $35,000.
. The planned merchandise inventory on December 31 is $270,000.
• The cost of goods sold is 75% of the sales price.
. All purchases are paid for in cash
.There is no interest expense or income tax expense.
The budgeted cash receipts for December are:

Answers

The budgeted cash receipts for December for the Bandeiras Corporation are $550,000.

What are the budgeted cash receipts?

The budgeted cash receipts represent the expected cash collections for a period.

The budgeted cash receipts are based on the forecasted sales, which appear in the sales budget.

The budgeted cash receipts do not include the beginning cash balance of $25,000.

When the budgeted cash receipts are added to the beginning cash balance, the total cash available for cash expenses and investments is derived.

Cash Budget Information:

Cash Sales = $550,000

Beginning cash balance = $25,000

Selling and Admin Expense $60,000

Cash Payments for purchases and others.

Thus, based on the given information, the budgeted cash receipts for December are only $550,000.

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if quantity demamded is completely unresponsive to changes in price ,demand is what?​

Answers

Answer:

If quantity demanded is completely unresponsive to changes in price, demand is Perfectly inelastic.

Explanation:

Perfectly inelastic demand means that quantity demanded remains the same when price increases or decreases. Consumers are completely unresponsive to changes in price.

I hope it's helpful

Individual consumers are considered as:

communication
possible customers
competition
demographics

Answers

B. Possible customers

A long-term period of economic recession that leads to a low GDP and very
high unemployment is a(n)

Answers

Answer:

Depression

Explanation:

A long-term period of the economic recession that leads to a low GDP and very high unemployment is a(n) DEPRESSION

Depression is an economic term used to describe a deep tumble in an economy that occurs for a long period of more than six months. Depression lasts for years, and it is characterized by low real GDP and an awfully high level of unemployment.

Hence, in this case, the right answer is Depression.

Which of the following best describes what investment is?
A required payment to owners of a company
An amount of money to pay for larger operations
A new company with several shareholders
A renewable technology in a developing country

Answers

The most likely answer is option 3

(5 points)
Willie's Hot Dogs had sales last year of $250,300 and a guest count of 76,079.
Sales this year were $280,750 with a guest count of 83,556.
What was Willie's guest count percentage variance?

Answers

Willie's guest count percentage variance is 9.82%.

How to calculate guest count percentage

To calculate the guest count percentage variance

Use the following formula:

Guest count percentage variance = [(current year guest count - prior year guest count) / prior year guest count] x 100%

Guest count percentage variance = [(83,556 - 76,079) / 76,079] x 100%

Guest count percentage variance = (7,477 / 76,079) x 100%

Guest count percentage variance = 0.0982 x 100%

Guest count percentage variance = 9.82%

Therefore, Willie's guest count percentage variance is 9.82%.

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what is Economics in simple terms​

Answers

Answer:

The New York Stock Exchange in New York City, USA. Economics is the social science which studies economic activity: how people make choices to get what they want. It has been defined as "the study of scarcity and choice" and is basically about the choices people make.

Explanation:

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6. Comparative advantage is when A. B. C. D.
A. one person can produce more of a good than another person.
B. one person can produce a good at a lower opportunity cost than another person.
C. Two parties can complete a task equally well.
D. one person can produce a good at a higher opportunity cost than another person.

Answers

B. one person can produce a good at a lower opportunity cost than another person.

Comparative advantage is a concept in economics that refers to the ability of a person, firm, or country to produce a good or service at a lower opportunity cost than another. Opportunity cost is the cost of forgoing an alternative opportunity in order to pursue a particular action. Hence, the correct option will be B: one person can produce a good at a lower opportunity cost than another person.

For example, let's say Person A can produce 10 units of product X or 5 units of product Y in one hour, while Person B can produce 8 units of product X or 4 units of product Y in one hour. Person A has an absolute advantage in producing both X and Y, as they can produce more of each product than Person B. However, Person B has a comparative advantage in producing product Y, as they can produce it at a lower opportunity cost than Person A, since they have to give up less of their production of product X to produce product Y.

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At the end of the year, what is included in the CLOSING ENTRY to close a REVENUE account?

Answers

At the end of the year, debit all revenue accounts and credit the income summary account to clear the revenue account balances, in the closing entry.

What is closing entry?

Closing entries are journal entries made at the end of a fiscal period to convert temporary accounts to permanent accounts. The closing entry's purpose is to reset the temporary account balances on the general ledger, the company's financial data record-keeping system, to zero.

Temporary accounts are used to document accounting activity over a specific time period. In the closing entry, debit all revenue accounts and credit the income summary account to clear the revenue account balances.

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If consumers start saving more rather than spending, what is most likely to happen? A Decrease in Savings, B Increase in the real interest rate, C Decrease in the Supply of loanable funds, D Decrease in the real interest rate

If the Federal Reserve institutes Contractionary Policy, which of the following is most likely to increase? A Interest rates ,B Gross Domestic Product ,C Government spending , D Tax rates

Answers

If consumers start saving more rather than spending, the most likely outcome would be a decrease in the real interest rate (option D).

If the Federal Reserve institutes Contractionary Policy, the most likely outcome would be an increase in interest rates (option A).

What happens If consumers start saving more rather than spending

This happens because an increase in savings means that there is more supply of loanable funds in the market, which can lead to a decrease in the cost of borrowing and, consequently, a decrease in the real interest rate.

What happens if Federal Reserve institutes Contractionary Policy

If the Federal Reserve institutes Contractionary Policy, the most likely outcome would be an increase in interest rates (option A). Contractionary policy is designed to reduce the money supply and slow down economic growth to combat inflation.

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Assume that the British government eliminates all controls on imports by British companies. Other things being equal, the U.S. demand for pounds would ____, the supply of pounds for sale would ____, and the equilibrium value of the pound would ____. a. remain unchanged; increase; decrease b. remain unchanged; increase; increase c. decrease; increase; decrease d. increase; increase; increase

Answers

Answer:

increase

increase

decrease

A blank is something a person want to get out of a job or that bring them job satisfaction

Answers

Answer:

A work value  is something a person wants to get out of a job or that brings them job satisfaction. Correct answer: B

Work values include talents, motives, values and attitudes which provide stability and direction for the chosen career. That is why it is very important to choose your career for the right reasons, goals and motivation.

Explanation:

Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.9 customers arrive each hour. One design consultant is available to answer customer questions and make product recommendations. The consultant averages 10 minutes with each customer.
A. Compute the operating characteristics of the customer waiting line, assuming Poisson arrivals and exponential service times. If required, round your answers to four decimal places.

Lq =
L =
Wq = hours
W = hours
Pw =

B. Service goals dictate that an arriving customer should not wait for service more than an average of 6 minutes. Is this goal being met? If not, what action do you recommend? Yes or No
C. If the consultant can reduce the average time spent per customer to 8 minutes, what is the mean service rate? If required, round your answer to one decimal place.

------ customer per hour

Will the service goal be met? Yes or No

Answers

A. Operating characteristics:

Lq ≈ 0.5017, L ≈ 0.9377, Wq ≈ 0.1730 hours, W ≈ 0.5063 hours, Pw ≈ 0.4833

B. Service goal: Not met. Action recommended.

C. Mean service rate: 7.5 customers/hour.

If the consultant can reduce the average time spent per customer to 8 minutes, then the average time a customer spends in the system will be 0.33 hours (20 minutes).

A. To compute the operating characteristics of the customer waiting line:

Arrival rate (λ) = 2.9 customers/hour

Service rate (μ) = 60 minutes / 10 minutes per customer = 6 customers/hour

Average number of customers in the queue (Lq):

Lq = (λ^2) / (μ * (μ - λ)) ≈ 0.5017

Average number of customers in the system (L):

L = λ / (μ - λ) ≈ 0.9377

Average waiting time in the queue (Wq):

Wq = Lq / λ ≈ 0.1730 hours (approximately 10.38 minutes)

Average waiting time in the system (W):

W = Wq + (1 / μ) ≈ 0.5063 hours (approximately 30.38 minutes)

Probability of a customer waiting in the queue (Pw):

Pw = λ / μ ≈ 0.4833

B. The service goal is that an arriving customer should not wait for service more than an average of 6 minutes. However, the average waiting time in the system (W) is approximately 30.38 minutes, exceeding the goal. Therefore, the service goal is not being met.

Action recommendation: To meet the service goal, I would recommend taking the following actions:

Increase staffing: Hire additional design consultants to handle customer questions and product recommendations.

Improve efficiency: Streamline processes and provide training to the consultant to reduce the time spent with each customer.

Appointment scheduling: Implement a system for customers to schedule appointments, ensuring dedicated time slots for each customer and minimizing waiting times.

Self-service options: Provide self-service resources or online tools where customers can access basic information and make preliminary decisions, reducing the need for extensive consultations.

C. If the consultant can reduce the average time spent per customer to 8 minutes, the mean service rate can be calculated as follows:

Mean service rate (μ) = 60 minutes / 8 minutes per customer ≈ 7.5 customers/hour

Will the service goal be met? Yes

If the consultant can reduce the average time spent per customer to 8 minutes, then the average time a customer spends in the system will be 0.33 hours (20 minutes). This is less than the service goal of 6 minutes, so the goal will be met.

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If an investor has a fixed investment horizon, what type of security can be used to minimize both the price risk and the reinvestment risk?

Answers

Answer:

A zero coupon treasury bond

Explanation:

A zero coupon treasury bond having a maturity period matching the investment horizon of an investor can minimize both price risk and reinvestment risk.  Reinvestment risk in case of a bond refers to reinvestment of the cash flows from the bond at a return close to current investment rate of return. As a zero coupon treasury bond do not pay any coupon payment, it won't carry any reinvestment risk.  

The bond holder in case of a zero coupon treasury bond, receives a guaranteed payment at maturity of the bond. This payment is equal to face value or par value of the bond. Price risk (increase or decrease in a bond value due to interest rates) matters if a bond is sold before maturity.. However, on selling a bond at its maturity, price risk won't matter as the payment will be equal to face or par value.

Pat decides to leave her job as an engineer to start a her own business. She estimates that her costs in rent, inventory, supplies, total $150,000. She will also give up her $80,000 salary as an engineer to work in her business. How much is her implicit cost

Answers

Answer:

Pat

Her implicit cost is:

$80,000

Explanation:

Pat's implicit cost is one part of the opportunity cost that arises when she utilizes her resources, knowledge, and skills toward a project or business without any explicit compensation for the utilized resources.  She will be giving up $80,000 from all salary as an employed engineer to start her own business.  She does not necessarily need to make a monetary payment for her implicit cost, unlike her explicit cost of $150,000.

Even taxpayers that would not
normally
need to file a tax return, should file
one?

Answers

Even taxpayers that would not normally need to file a tax return, should file one in order to claim a refund of taxes paid.

If suppose a taxpayers income does not exceed a certain amount, then he or she may not be required to file a tax return. However, if a taxpayer paid the taxes during the year, then he or she would thus need in order to file a return in order to claim and receive a required refund.

Here, taxpayers may not need to file a return based upon his or her income, but somehow it might be beneficial in certain situations in order to file it anyway. Thus, although one might not be required to file a tax return, but it might be wise to file one anyway.

Hence, it is important to file a tax return.

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Question 5
If an individual has a Holland code suggesting Conventional strengths,
career in which field might be most satisfying?
h
O Finance
O Teaching
O Food Service
O Medicine

Answers

If an individual has a Holland code suggesting Conventional strengths, the career in finance field might be most satisfying. Thus, the correct answer is option B.

What is a Holland Code?

The Holland Codes, also known as the Holland Occupational Themes, are a taxonomy of interests based on a career and vocational choice theory developed by American psychologist John L. Holland.

The Holland Codes are a component of the Strong Interest Inventory, which is used to assess interests. Holland defines the "Conventional Type" as a person who has "a preference for actives that entail the explicit, ordered, systematic manipulation of data . These behavioral tendencies, in turn, lead to the development of clerical, computational, and business system competencies.

Therefore, a career in finance would be appropriate for an individual who has a Holland code suggesting Conventional strengths.

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Which methods can be used to run a query? Check all that apply.
On the Create tab, in the Queries group, click Run.
In query Design view, on the Design tab, click Run.
Switch to Datasheet view before any other commands.
Close the Show Table dialog box in the Datasheet view.
On the Create tab, in the Queries group, click Create Query.

Answers

Answer:

Option B and C

Explanation:

A query can be run by selecting query option visible through deign view option. After selecting the appropriate option, the query must be run. This shall execute the function for the selected option.  

Like wise in data sheet view, one can see the action query  before running it.  

Hence, option B and C are correct

Answer:

B) In query Design view, on the Design tab, click Run.

C) Switch to Datasheet view before any other commands.

Explanation:

In 2014, a drought in the Midwest raised grain prices, leading to a decline in the size of cattle herds. Ultimately, the price of ground beef rose from about $3 a pound to over $4 by 2015. Demonstrate graphically the effect of the drought on equilibrium price and quantity in the ground beef market.

Answers

Answer:

please check the attached image for a graphical representation

Explanation:

As a result of the drought, the supply of ground beef would fall. This would lead to a leftward shift of the demand curve. As a result equilibrium price would rise and equilibrium quantity would fall

In 2014, a drought in the Midwest raised grain prices, leading to a decline in the size of cattle herds.

Equilibrium is reached when what occurs?
quantity supplied equals quantity demanded
there is no change in the quantity supplied
price increases
prices are inelastic

Answers

Equilibrium is reached when quantity supplied equals quantity demanded in a market. Therefore, the correct option is A.

Equilibrium means that the quantity of a product or service that producers are willing to supply matches the quantity that consumers are willing to buy at a given price. At equilibrium, there is a balance between supply and demand, and there is no inherent tendency for prices to change.

In an equilibrium state, the market clears, meaning that there are no excess supply or excess demand conditions. Producers are supplying exactly what consumers are demanding, and there is no pressure for prices to increase or decrease.

Thus, the ideal selection is option A.

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If you were to start your own business mention four steps which will bring you closes to your goal.

Answers

When I start my own business, the steps that will bring me closer to my goals are:

I will conduct market research in the area of my business.I will write my business plan. I will make my business legal.Fund the business and choose the right location for it.

Why  start my own business?

Starting your own business is known to be one that has a lot of financial benefits that is based on working for a wage or salary.

Conclusively, The steps a person need to take to build their business is that one need to have full knowledge about the business and make sure that the business makes profits.

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When shares of stock held as an investment are sold, the difference between the proceeds and the balance of the investment account is recorded as
a(n)
Oa. operating income and losses
Ob. paid-in capital addition
Oc. prior period adjustment
Od. gain or loss
?

Answers

When shares of stock held as an investment are sold, the difference between the proceeds and the balance of the investment account is recorded as gain or loss.

Tartan Industries currently has total capital equal to $10 million, has zero debt, is in the 40% federal-plus-state tax bracket, has a net income of $1 million, and distributes 40% of its earnings as dividends. Net income is expected to grow at a constant rate of 3% per year, 240,000 shares of stock are outstanding, and the current WACC is 13.50%. The company is considering a recapitalization where it will issue $1 million in debt and use the proceeds to repurchase stock. Investment bankers have estimated that if the company goes through with the recapitalization, its before-tax cost of debt will be 11% and its cost of equity will rise to 14.5%.
a) What is the stock's current price per share (before the recapitalization)?
b) Assuming that the company maintains the same payout ratio, what will be its stock price following the recapitalization? Assume that shares are repurchased at the price calculated in part a.

Answers

Answer:

A. $16.38

B. $18.70

Explanation:

a) Calculation to determine the stock's current price per share (before the recapitalization)

Using this formula

V=D0(1+g)/K−g

Let plug in the formula

V=[(40% *$1,000,000)/240,000](1+0.03)/0.135−0.03

V=($400,000/240,000)(1+0.03)/0.135−0.03

V=1.67(1+0.03)/0.135−0.03

V=1.67(1.03)/0.135−0.03

V=1.7201/0.105

V=$16.38

Therefore the stock's current price per share (before the recapitalization) is $16.38

b. Calculation to determine what will be its stock price following the recapitalization

First step is to calculate the Interest

Interest = 1,000,000 * 11%

Interest= 110,000

Second step is to calculate the Buy back number of share

Buy back number of share = $1,000,000/16.38

Buy back number of share= 61,050 shares

Second step is to calculate the Outstanding share

Outstanding share =240,000 - 61,050

Outstanding share=178,950

Third step is to calculate the Net income

Using this formula

Net income = Income before tax -Interest - Tax

Let plug in the formula

Net income= (1666667 - 110000)* (1-0.4)

Net income= 934000.2

Fourth step is to calculate the Dividend

Dividend =934000.2 * 40%

Dividend= 373600.08

Fifth step is to calculate the Dividend per share

Dividend per share =373600.08/178950

Dividend per share= 2.088

Now let calculate the stock price after Recapitalization

Using this formula

V=D0(1+g)/K−g

Let plug in the formula

V=2.088(1+0.03)/0.145−0.03

V=2.088(1.03)/0.145−0.03

V=2.15064/0.115

V=$18.70

Therefore stock price following the recapitalization is $18.70

How does risk pooling affect inventory levels when a company uses fewer and centralized warehouses? Please explain.

Answers

Answer:

In simple words, Inventory risk pooling is the concept that the variability in demand for raw materials is reduced by aggregating demand across multiple products. When properly employed, a business can use risk pooling to maintain lower inventory levels while still avoiding stock out conditions. Although for preventing stock out situation a company need warehouses where they can keep supply sufficient for emergency conditions.

Flint Enterprises had the following cost and production information for April: Units Produced 20,000 Unit Sales Price $ 170 Manufacturing Cost Per Unit Direct Material $ 30 Direct Labor $ 15 Variable Manufacturing Overhead $ 13 Fixed Manufacturing Overhead ($500,000/20,000) = $ 25 Full Manufacturing Cost Per Unit $ 83 Nonmanufacturing Costs Variable Selling Expenses $ 77,000 Fixed General and Administrative Costs $ 100,000 Inventory increased by 3,000 units during April. What is Flint Enterprise's income under variable costing?

Answers

Answer:

Net operating income= $1,563,000

Explanation:

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

First, we need to calculate the total variable cost:

Total variable cost= (30 + 15 + 13)*20,000 + 77,000= 1,237,000

Now, we can determine the net operating income:

Sales= 20,000*170= 3,400,000

Total variable cost= (1,237,000)

Contribution margin= 2,163,000

Fixed overhead= (500,000)

Fixed General and Administrative Costs= (100,000)

Net operating income= 1,563,000

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