What would be the company gross margin
Course:- Accounting Basics
Reference No.:- EM132082190

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Question - Ronald Products Co. incurred the following costs in 2006, the company's first year of operations: $28,000 for direct materials used in manufacturing; $42,000 for manufacturing equipment to be straight-line depreciated over five years with a $2,000 salvage value; $16,000 for office furniture to be straight-line depreciated over four years with no salvage value; $14,000 for utilities associated with the manufacturing facility; $4,000 for office utilities; $38,000 for the company president's salary; $24,000 for the manufacturing manager's salary; $48,000 for production workers' wages; and $22,000 for commissions paid to salespeople. If the company produced 7,625 units during the year and sold 6,400 units for $22 each, what would be the company's gross margin for 2006?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
A company produces 4800 parts per day and sells them at approximately half of that rate. The set-up cost is Rs.1000 and carrying cost is Rs.5 per units. The annual demand is 4
The students are surprised when they weigh the contents of their four pack- ages and find the average weight to be only 11.5 ounces. When they write to the company, its cons
A corporation sold land (with an adjusted basis of $240,000) for $200,000 to its majority shareholder. (a.) What is the company's recognized gain or loss on the sale? (b.) Wha
Under the new method sales would increase by 15 percent each month, and net income would increase by one third. Fixed cost could be slashed to only $15,000 per month. Calcul
Your powerpoint presentation should be 4 to 5 slides of content. Also include a title slide and a reference slide. The title slide and reference slide are not included in th
At December 31, 2008, Mongo, Inc. reported in its balance sheet a net loss of $3 million related to its pension plan. The actuary for Mongo at the end of 2009 increased her
Homeville Inc. has a sales budget for next month of $800,000. Cost of goods sold is expected to be 25 percent of sales. All goods are purchased in the month used and paid fo
On the basis of your judgment, express whether Johnson Associates is a viable candidate for an ABC system? If yes, why do you feel so, and if no, what makes you feel that wa