Best estimate of company net operating income

Assignment Help Accounting Basics
Reference no: EM13146983

Mitch Corporation's contribution margin ratio is 23% and its fixed monthly expenses are $71,000. If the company's sales for a month are $708,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.

Reference no: EM13146983

Questions Cloud

Gazette corporation hired susan sharp : Gazette Corporation hired Susan Sharp to conduct an audit of its books and to prepare financial statements for the corporation's annual meeting on July 1.
Explain how many photons does the laser emit : The frequency doubled output of a Nd3+ YAG laser has a wavelength of 532nm. If each pulse of light has a total energy of 0.550J and the repetition rate of the laser is 30Hz
Internal rate of return of the project : Minne Corp is considering the purchase of a new piece of equipment. When discounted at a hurdle rate of 8%, the project has a net present value of $24,580. When discounted at a hurdle rate of 10%, the project has a net present value of ($28,940). ..
What are the probabilities of each : Some dogs bark when trailing, others are silent. The barking trait is due to a dominant gene. Erect ears are dominant to drooping ears. What kinds (phenotypes) of pups would you expect from a heterozygous erect-eared barker mated to a droop-eared,..
Best estimate of company net operating income : If the company's sales for a month are $708,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.
Differences and similarities in audits of financial : What are the differences and similarities in audits of financial statement compliance audits operational audits?
What is the final temperature of the metal : 5000 joules of energy are added to 108 grams of silver, Ag, at 20°C. What is the final temperature of the metal? (the specific heat of silver is 0.235)
Problem related to purchase of a new piece of equipment : Marchand Corp is considering the purchase of a new piece of equipment, which would have an initial cost of $500,000, a 7 year life, and $150,000 salvage value. The increase in cash flow each year of the equipment's life would be as follows:
The free energy change of the conversion of tasmainium : The free energy change of the conversion of tasmainium to bulgarium was - 60 kcal and the enthalpy of the reaction was determined to be - 9.2kcal.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Company merchandise inventory

A company's merchandise inventory includes all of the following, except:

  Incremental analysis of jefferson plaza hotel

The Jefferson Plaza Hotel is a deluxe four star establishment. Late on Friday, it had 10 of its 200 rooms available when the desk clerk received a call from the Riley Hotel.

  Statements regarding fixed costs

Which of the following statements regarding fixed costs is incorrect?

  Interest in a limited liability company

In june 2009, joanne invested for a 20% interest in a limited liability company in which she is a material participant. The LLC reported losses of $340,000 in 2009 and $180,000 in 2010. Joanne's share of the LLC's losses was $68,000 in 2010 and $3..

  Computing the pension expense

Bickner Company provides the following information about its defined benefit pension plan for the year 2010.

  Calculate the real risk-free rate of return

30-day T-bills are currently yielding 8 percent. Current interest rate premiums: Inflation premium: 5%  Liquidity premium: 1%  Maturity risk premium: 2%:  Default risk premium: 2% Calculate the real risk-free rate of return.

  Dollar amount of purchase of suits

Beginning inventory for September is expected to be $4,000 suits. What is the dollar amount of purchase of suits? Each suit has a cost of $75.

  Compute the annual payments

Chancellor Ltd. sells an asset with a $1 million fair value to Sophie Inc. Sophie agrees to make 6 equal payments, one year apart, commencing on the date of sale. The payments include principal and 6% annual interest. Compute the annual payments.

  Making journal entries for investments

Prepare journal entries for investments using the fair value and the equity method. How does it relate to the practice of accounting and its uses in business?

  Annual lease payment

The lease terms are arranged so that a return of 12% is earned by the lessor, what is the annual lease payment required to yield the desired return???

  Resale of tax preparation and tax research

Silver Fox Corporation has been engaged in the resale of tax preparation and tax research-related books and software for several years.

  Variable and absorption costing

XYZ Company sells its razors at $8.00 per unit. The following data relates to its first year of operations. Prepare an income statement based on variable costing.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd