What is budgeted operating income

Assignment Help Accounting Basics
Reference no: EM13159972

Katie Enterprises reports the year-end information from 20X8 as follows: Sales (70,000 units) $560,000 Cost of goods sold 210,000 Gross margin 350,000 Operating expenses 200,000 Operating income $ 150,000. Katie is developing the 20X9 budget. In 20X9 the company would like to increase selling prices by 4%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost. What is budgeted operating income for 20X9?

Reference no: EM13159972

Questions Cloud

The centroid and the cluster : Problem 1.  For the following set of points, the initial centroid, and the cutoff distance of 4, do the following operations: 1) find the clusters; 2) update the centroid value; 3) find the distance between the centroid and the cluster, and update th..
What is the ph of a solution prepared : What is the pH of a solution prepared by mixing 25.00 mL of a 0.10 M solution of the weak acid CH3CO2H with 25.00 mL of 0.040 M sodium acetate, CH3CO2Na? Assume that the volume of the solutions are additive and that Ka = 1.8 ?* 10-5 for CH3CO2H.
Size of the ozone hole centered : Explain why the size of the ozone hole centered over Antarctica has increased over the past 30 years. What changes occurred since the implementation of the Montreal Protocol?
Explain how the quantity of executives demanded : Explain how the quantity of executives demanded, the quantity supplied, and executive pay will change based on the above statement.
What is budgeted operating income : Assume that COGS is a variable cost and that operating expenses are a fixed cost. What is budgeted operating income for 20X9?
State the temperature of the entire system rose : The temperature of the entire system rose from 25.30 °C to 26.59 °C. Calculate the heat of reaction, in kJ, per mole of KOH(aq).
Estimate the cost of the receivables loan : Estimate the cost of the receivables loan to Johnson when the firm borrows the $300,000. The prime rate is currently 11 percent.
Calculate the mass of water produced : Calculate the mass of H2O produced when 12.0 g of glucose is combusted in a container of oxygen with a volume of 1.3 L at a pressure of 2.2 atm and a temperature of 205 °C.
Concepts of goffman theory of dramaturgy : What is the main ideas and concepts of Goffman's theory of dramaturgy

Reviews

Write a Review

Accounting Basics Questions & Answers

  Problem on effective interest method

Gross proceeds from the offering amounted to $850,000,000. The discount on the Senior Discount Notes is being accreted under the effective interest method.

  Federal income tax rate on all tax related items

Cooper Corporation has 50,000 shares of common stock outstanding and has a 30% federal income tax rate on all tax related items. Round all earnings per share figures to the nearest cent.

  Compute the expected new net income

As a result, they estimate that gross profit will increase by $37,605 and operating expenses by $62,595. Compute the expected new net income. (Hint: You do not need to prepare an income statement).

  Expected results of capital budgeting decisions

What are some methods that aid management in analyzing the expected results of capital budgeting decisions?

  Compounding interest-amount of payments

The first payment will be due in 6 months, the second in 18 months and the third in 30 months. What is the size of these payments if money is worth 10% compounded quarterly and a focal date of 18 months is used for evaluation purposes?

  Bloomfield bakers accounts for investment

Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investment at $150,000 and $165,000 at December 31m 2010 and 2011, respectively.

  Cost allocation from one of the service departments

The manager of an operating department just received a cost report and he has made the following comment respect to the cost allocated from one of the service departments:

  Statement of cash flows using indirect method

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

  What was the amount of hanson''s cost of goods sold

Hanson Company uses a periodic inventory system. For 2012, its beginning inventory was $74,000; purchases of inventory were $328,000; and inventory at the end of the period was $89,000. What was the amount of Hanson's cost of goods sold for 2012?

  Methods of evaluating capital investment proposals

The methods of evaluating capital investment proposals can be separated into two general groups--present value methods and:

  Accounting and straight-line amortization

On Jan 1. 2009, Clintwood corporation issued a $1,000, ten-year, 10% bond payable (interest payable each dec 31) For the 3 assumptions below complete the following schedule assuming the accounting year ends dec 31, and straight-line amortization i..

  How operating income be affected

If Hoffman accepts the special order, the company would not have to pay its salespeople their normal commission of $2 per unit, but the company would incur a shipping cost of $3 per unit on the items in the special order. If Hoffman accepts the sp..

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