Answer:
The correct answer is B.
Explanation:
Giving the following information:
You believe this will increase your contribution margin from $127,000 to $218,000 per year. Rent, however, will increase by $400 per month, and utilities will increase by $150 per month. You will also need to hire two additional employees for $24,000 each annually.
We need to calculate the effect of moving in the net income of the company:
Effect on income= (218,000 - 127,000) - (400*12) - (150*12) - 24,000*2
Effect on income= $36,400 increase
Answer:
Option (c) is correct.
Explanation:
Given that,
Sales = $ 2,000.00
Costs = 1,400.00
Depreciation = 250.00
EBIT = $ 350.00
Interest expense = 70.00
EBT = $280.00
Taxes (25%) = 112.00
Net income = $168.00
Net operating profit after taxes (NOPAT):
= EBIT × (1 - tax rate)
= $350 × (1 - 25%)
= $350 × 0.75
= $262.50
Therefore, the net operating profit after taxes (NOPAT) is $262.5.
Answer:
C. $65,800
Explanation:
Fixed csot: those which do not change for a relevant range with the production output. They aer constant.
Factory insurance 21,000
Factory insurance 13,000
Factory manager's salary 10,800
Janitor's salary 5,000
Property taxes: <u> 16,000 </u>
Total Fixed Cost: 65,800
The direct materials and direct labor are variable cost as they drop to zero if no unit is produced.
Same goes with packaging cost, if no unit is produced then, no packagin is needed.
Answer:
The correct answer is D. indirect cost.
Explanation:
That is, indirect costs are those costs that the company incurs during the exercise of its activity, whose allocation is more complicated, since they are not directly related to production.
In the above case, it is shown that the environmental effect produced by the cyclone is not directly related to the production of the bricks, so it is considered that it corresponds to indirect costs of the operation.
