User Account

All Pages

Compute the net income to be earned under each alternative

Assignment Help Accounting Basics
Reference no: EM132739159

Question - Company reports the following operating results for the month of August: sales $343,000 (units 4,900), variable costs $261,000, and fixed costs $93,000. Management is considering the following independent courses of action to increase net income.

1. Increase selling price by 14% with no change in total variable costs or units sold.

2. Reduce variable costs to 58% of sales.

Compute the net income to be earned under each alternative.

Which course of action will produce the higher net income?

Reference no: EM132739159

Questions Cloud

What are the legal issues in conducting such interviews : What will you tell the managers in regard to integrating people with different abilities? What are the legal issues in conducting such interviews?
By how much the company total profit increase or decrease : By how much the company's total profit increase or decrease if Office Stationery Ltd accepts the offshore order? Should it accept the special discounted offer
What training needs and activities do you anticipate : What training needs and activities do you anticipate for this new administrative assistant. Please be specific. Create a 30, 60, and 90-day timeline.
Explain the purpose of the contract bar doctrine : The contract bar is important to serving the interests underlying the NLRA. Explain the meaning and purpose of the contract bar doctrine.
Compute the net income to be earned under each alternative : Increase selling price by 14% with no change in total variable costs or units sold. Compute the net income to be earned under each alternative
List the parties as specified in relevant whs legislation : List the duties, rights and obligations of individuals and parties as specified in relevant WHS legislation (NSW Australia) with regard to the supply of service
Should states continue to allow ballot initiatives : What factors determine whether people turn out to vote in U.S. elections? Should states continue to allow ballot initiatives and other forms of direct democracy
Compute the cost of the ending inventory : Compute the cost of the ending inventory under the average-cost method, assuming there are 360 units on hand
Professional learning community norms : Professional Learning Community Norms. Develop a set of norms for a PLC which includes the following considerations

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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