Compute the net income to be earned under each alternative

Assignment Help Financial Accounting

Reference no: EM131262294

Barnes Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $213,000; and fixed costs $71,600. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative.

1. Increase selling price by 10% with no change in total variable costs or sales volume. Net income $

Reference no: EM131262294

Questions Cloud

Assume at-risk limitation equals the tax basis limitation : Jessica is a one-third owner in Bikes-R-Us, an S corporation that experienced a $45,000 loss this year (year 1). If her stock basis is $10,000 at the beginning of the year, how much of this loss clears the hurdle for deductibility (assume at-risk lim..

What price should it charge for kits produced : latemir company expects to make 7200 travel sewing kits in 2015. In january the company made 1800 kits. material and labor cost for january eas 7200 and 9000 respectively. assuming latimer desires to sell its sewing kits for 20% of cost what price sh..

Cell phone company offers two different plans : A cell phone company offers two different plans. Plan A costs $95 per month for unlimited talk and text. Plan B costs $0.20 per minute plus $0.10 per text message sent. What is your sister’s total cost under each of the two plans? Suppose your sister..

Uses the straight-line method of amortization : On November 1, 2014, Horton Company purchased Lopez, Inc., 10-year, 9%, bonds with a face value of $600,000, for $540,000. An additional $15,000 was paid for the accrued interest. Interest is payable semiannually on January 1 and July 1. The bonds ma..

Compute the net income to be earned under each alternative : Barnes Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $213,000; and fixed costs $71,600. Management is considering the following independent courses of action to increase net inco..

Complementary club-fitting services : O’Hara Associates sells golf clubs and with each sale of a full set of clubs provides complementary club-fitting services. A full set of clubs with the fitting services sells for $1,500. O’Hara estimates that it incurs $60 of staff compensation and o..

All employees health and accident insurance coverage : Faye is a marketing manager for Healthy Corp. She earns a salary of $100,000 and has received the following benefits during 2012: Healthy pays 75% of all employees' health and accident insurance coverage. Healthy paid $6,000 towards the cost of Faye'..

What accounting method can a partnership : What accounting method can a partnership, C-corp, and S-corp use? Use section numbers are reference.

What would happen to its liquidity ratios : If a company purchases inventory on credit, what would happen to its liquidity ratios? Given that all the current liquidity ratios of the company are less than 1.0. Would they increase, decrease, or remain unchanged.

User Account

All Pages