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

  Net capital assets in the governmental activities

What amount should be added to net capital assets in the governmental activities accounts in 2007?

  One-half of retirement savings

You can tax shelter only one-half of your retirement savings. You want to invest one-half of your savings in bonds and one-half in stocks. How much of the bonds and how much of the stocks should you allocate to the tax sheltered investment?

  Current generally accepted accounting principle

For each of the situations, discuss the following and provide support for your conclusions: The type of accounting change. The manner of reporting the change under current generally accepted accounting principle. Where applicable, discuss how amounts..

  Journal entry to record the sale

Equestrain Roads sold $50,000 of goods and accepted the customer's $50,000 10% 1-year note receivable in exchange. Assuming 10% approximates the market rate of return, what would be the debit in this journal entry to record the sale?

  Saving time have an investment value

If a building for sale has an estimated market value of $800,000, could it at the same time have an investment value of $10,000,000? Why or why not?

  Expected cash receipts from current and past sales

Assume that total sales for January are budgeted to be $50,000. What are the expected cash receipts for January from the current and past sales?

  Weighted average method of accounting for units and cost

The dept started 375,000 units into production during the month and transfered 380,000 completed units to the next dept. Compute the equivalent units of production for the 1st dept for June, assuming that the company uses the weighted average meth..

  Show in good form a schedule or t-account showing

On January 1 , 2011 , Paxton Company purchased a 70% interest in Sagon Company for $1,300,000, at which time Sagon Company had retained earnings of $500,000 and capital stock of $1,000,000.

  What is the cost behavior pattern assumed for the food

A university's meal plan for students provides that 40% of a student's meal fee is made available to the student to purchase food at "cost." At the end of the term, the student receives a refund for any of this amount that has not been spent. The ..

  Company receivable management of selling its products

What are the implications for a company's receivable management of selling its products internationally?

  Debate how this affects the accounting profession as a whole

The IRS allows CPAs, lawyers, and Enrolled Agents (EA) to prepare taxes for compensation. Debate how this affects the accounting profession as a whole, and how you think this change will impact the accuracy and cost of tax preparation.

  What percentage increase in sales would enable a company

What percentage increase in sales would enable a company with 2,000,000 in sales revenue to reach its goal of increasing its net profit of 340,000 by 15%?

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