Business, 07.04.2020 23:07, javonteoshamccaliste
The following income statement was drawn from the records of Benson Company, a merchandising firm: BENSON COMPANY Income Statement For the Year Ended December 31, 2018 Sales revenue (7,500 units × $161) $ 1,207,500 Cost of goods sold (7,500 units × $80) (600,000 ) Gross margin 607,500 Sales commissions (10% of sales) (120,750 ) Administrative salaries expense (89,000 ) Advertising expense (40,000 ) Depreciation expense (49,000 ) Shipping and handling expenses (7,500 units × $3) (22,500 ) Net income $ 286,250 Required Reconstruct the income statement using the contribution margin format. Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Benson will earn if sales increase by 10 percent.
Answers: 2
Business, 22.06.2019 14:30, lilquanreem8051
Bridge building company estimates that it will incur $1,200,000 in overhead costs for the year. additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. what is the predetermined overhead rate for bridge building company if direct labor costs are to be used as an allocation base?
Answers: 3
Business, 22.06.2019 15:20, amulets5239
Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.
Answers: 3
Business, 22.06.2019 18:00, mcckenziee
When peter metcalf describes black diamond’s manufacturing facility in china as a “greenfield project,” he means that partnered with a chinese company to buy the plant . of all market entry strategies, this one carries the lowest risk. because black diamond manufactures its outdoor sports products outside the united states, what risks must its managers be aware of?
Answers: 1
The following income statement was drawn from the records of Benson Company, a merchandising firm: B...
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