1. what would be the revised net operating income per month if the sales volume increases by 70 units? 2. what would be the revised net operating income per month if the sales volume decreases by 70 units? 3. what would be the revised net operating income per month if the sales volume is 6,500 units?

Answers

Answer 1

The revised net operating income per month if the sales volume increase by 70 units is $32740.

How to calculate the operating income?

The revised net operating income per month if the sales volume increase by 70 units will be

Sales = 7370 × 31 = $228470

Less: Variable expenses = 7370 × 19 = $140030

Contribution margin = 7370 × 12 = $88440

Less: Fixed expenses = $55700

Net operating income = $32740

When there's a decrease, this will be:

Sales = 7230 × 31 = $224130

Less: Variable expenses = 7230 × 19 = $137370

Contribution margin = 7230 × 12 = $86760

Less: Fixed expenses = $55700

Net operating income = $31060

The revised net operating income per month if the sales volume is 6,500 units will be:

Sales = 6500 × 31 = $201500

Less: Variable expenses = 6500 × 19 = $123500

Contribution margin = 6300 × 12 = $78000

Less: Fixed expenses = $55700

Net operating income = $22300

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a. what happens to the number of sandwiches and ice cream cones consumed if the price of ice cream cones rises to $2 a piece?

Answers

The number of sandwiches and ice cream cones consumed will reduce if the price of ice cream cones rises to $2 a piece

Why will the number of sandwiches and ice cream reduce?

The number of sandwiches and ice cream will decrease this is because according law of demand at a higher price the quantity demanded for the goods is reduced. People tend to buy more commodity when the price is reduced.

Therefore, The number of sandwiches and ice cream cones consumed will reduce if the price of ice cream cones rises to $2 a piece

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If the number of sandwiches and ice cream cones consumed if the price of ice cream cones rises to $2 a piece, income and substitution effects will take place.

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Income effect is the change in the consumption pattern of consumers based on their income at a particular time.

Substitution effects is the change which occurs when consumers replace expensive goods with cheap goods as a result of changes in price and income.

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pinnacle Corp. budgeted $262,220 of overhead cost for the current year. Actual overhead costs for the year were $257,640. Pinnacle's plantwide allocation base, machine hours, was budgeted at 45,150 hours. Actual machine hours were 53,260. A total of 97,480 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a.$2.69 per machine hour b.$5.71 per machine hour c.$5.81 per machine hour d.$2.64 per machine hour

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The DSU is important for team members to out their thoughts and idea together.

What is Daily Stand-Up (DSU)?

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Sales made on account are recorded with a debit to Accounts Receivable and credit to Sales Revenue for the price times the quantity. Management knows that some of those accounts will not be collected but is unsure which specific customers it will be. Thus, management estimates the amount and records an adjusting entry. Later, when the specific non-paying customer is identified, it writes off the account. The effect of the write off on the accounting equation is to _____. Multiple choice question. increase one asset and decrease another increase assets and stockholders' equity increase liabilities and decrease stockholders' equity reduce assets and stockholders' equity

Answers

The correct answer is option A. The effect of the write-off in the accounting equation is to increase one asset and decrease another.

What is a write off in accounting?

This is a term that is used to refer to the removal of all accounts that are uncollectible for the general ledger of the business.

It is a write off when a person is not able to carry out all of the obligations that they are supposed to do.

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