Answers
Solution:
Budgeted Sales for next year = $3,900,000 * 95% = $3,705,000
Variable cost for next year = ($540,000 + $450,000 + $295,000 + $790,000)* 110% = $2,282,500
Fixed costs = ($800,000 + $290,000) + $65,000 = $1,155,000
Operating profit for next year = Sales - Variable costs - Fixed costs
= $3,705,000 - $2,282,500 - $1,155,000 = $267,500
Hence 2nd option is correct.
.Similar Solved Questions
1 answer
Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly...
Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 17,900 of the assembly part at $5 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showin...
1 answer
Green Products Garden Supply (Stand-Alone PC-Based Accounting System) Green Products Garden (GPG) Supply sells and distributes...
Green Products Garden Supply (Stand-Alone PC-Based Accounting System) Green Products Garden (GPG) Supply sells and distributes a wide range of garden products and equipment including organic fertilizers, premium flower and grass seeds, organic pesticides, and garden spreaders. GPG's headquarters...
1 answer
A and B are Involved in a duel. The rules of the duel are that they...
A and B are Involved in a duel. The rules of the duel are that they are to shoot each other simultaneously. If one or both are hit, then the duel is over. If shots miss, then they repeat the process. Suppose that the results of the shots are independent and that each shot of A will hit B with probab...
1 answer
Blooper’s analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic...
Blooper’s analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic Optimistic Initial investment + 30 % – 25 % Revenues – 25 % + 20 % Variable costs + 25 % – 15 % Fixed cost + 50 % – 50 % Working cap...
1 answer
Explain briefly how you can use MS alone to determine whether an unknown has a Cl...
Explain briefly how you can use MS alone to determine whether an unknown has a Cl or Br. Your answer should focus solely on the one most reliable detail (for example, what is the mass signal would you see—and possibly any other details about the signal). Answer separately for Cl and for Br. a...
1 answer
Find the potential difference across each resistor in the figure below. (R1 = 4.60 ?, R2...
Find the potential difference across each resistor in the figure below. (R1 = 4.60 ?, R2 = 4.20 ?, R3 = 2.80 ?, R4 = 1.80 ?)?? ?V1 = ?V2 = ?V3 = ?V4 = 12.0 V 8.00 V 18.0 V...
1 answer
A flat loop with a 0.6 m^2 area experiences a changing magnetic field, given by B(t)...
A flat loop with a 0.6 m^2 area experiences a changing magnetic field, given by B(t) = Bo e^-t/5, where Bo = 3T/ The field remains at an angle of 30 degrees to the area of this loop: A) Determine the induced EMF as a function of time. B) At what time will the induced EMF be 1/4 of its initial value?...
1 answer
Origin and Fates of new genes: Outline the processes through which genes originate, and discuss cellular...
Origin and Fates of new genes: Outline the processes through which genes originate, and discuss cellular functions that can (a) enhance the origination of genes, and can (b) limit the evolution of new genes, Why are retroviral gene duplications often nonfunctional, once the process is complete? (re...
1 answer
The Wildhorse Co. is located in midtown Madison. During the past several years, net income has...
The Wildhorse Co. is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company's fiscal year on November 30, 2019, the following accounts appeared in two of its trial balances. All account balances are...
1 answer
Pretax cost of debt
Waterford Corp. issued a 30 year, 8 % semi-annual bond 7 years ago. The bond currently sells for 95% of its face value. The company’s tax rate is 34%. What is thepretax cost of debt? What is the after-tax cost of debt?...
1 answer
In Marissa's calculus course, attendance counts for 20% of the grade, quizzes count for 20% of...
In Marissa's calculus course, attendance counts for 20% of the grade, quizzes count for 20% of the grade, exams count for 45% of the grade, and the final exam counts for 15% of the grade. Marissa had a 100% average for attendance, 80% for quizzes, 80% for exams, and 85% on the final Determine Ma...
1 answer
Watch the three (3) videos on vitamins Summarize the videos. In your summary, state the name...
Watch the three (3) videos on vitamins Summarize the videos. In your summary, state the name of the video and discuss at least three (3) things you learned from each video. https://youtu.be/FmafhSMv0e0 https://youtu.be/D6EPGDb6kEo https://youtu.be/audgTg1vyl0...
1 answer
Cameroon Corp. manufactures and sells electric staplers for $15.50 each. If 10,000 units were sold in...
Cameroon Corp. manufactures and sells electric staplers for $15.50 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be: Multiple Choice $181,328 $161,200 $174,354 $167...
1 answer
Your firm has the option of making an investment in new software that will cost $304,007...
Your firm has the option of making an investment in new software that will cost $304,007 today, but will save the company money over several years, You estimate that the software will provide the savings shown in the following table (pictured) over its 5-year life. Should the firm make this investme...
1 answer
1426 1.40 Problem 1: LCNRV Anderson Company values inventory using LCNRV, on an individual-item basis. Item...
1426 1.40 Problem 1: LCNRV Anderson Company values inventory using LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sell 1320 1,200 $3.20 $4.50 $1.60 1333 900 2.70 3.40 1.00 800 4.50 5.00 1,000 3.60 3.20 1.35 1510 3.25 1.40 1522 500 3.9...