In year 2020, E Corp has an operating leverage of 1.25, margin of safety of P 100,000 and Contribution margin ratio of 40%. If sales increased by 10% and fixed cost is P 10,000, what will be the net income in year 2021?
*P = Philippine Peso
A. 48,000
B. 45,000
C. 44,000
D. None of the above
Answers
The net income in the year 2021 is P45,000 where P is equal to Philippine Peso. Option B is the correct answer.
The ratio of fixed costs to variable costs Operating is known as leverage. The difference between actual sales and break-even sales is known as the margin of safety. The contribution margin ratio is the ratio of contribution margin to sales.
Given
Operating leverage = 1.25
The margin of safety = P 100,000
Contribution margin ratio = 40%
We can calculate the break-even sales as follows:
Break-even sales = Fixed costs / Contribution margin ratio
= P 10,000 / 0.4
= P 25,000
Actual sales in the year 2020 are given as,
Actual sales = P 125,000 (P 25,000 + P 100,000)
If sales increased by 10% in the year 2021, then sales in the year 2021 would be given as,
= P 137,500 (P 125,000 × 1.10)
The contribution margin in the year 2021 would be given as,
= P 55,000 (P 137,500 × 0.4)
The net income in the year 2021 would be given as,
= P 45,000 (P 55,000 - P 10,000)
Therefore, the net income in the year 2021 is P45,000.
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Related Questions
The balance on a credit card, that charges a 20%
APR interest rate, over a 1 month period is given in
the following table:
Days 1-5: $200 (initial balance)
Days 6-20: $350 ($150 purchase)
Days 21-30: $150 ($200 payment)
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
finance charge = $ [?]
Round to the nearest hundredth.
Enter
Answers
The balance on a credit card, that charges a 20% APR interest rate, the Finance charge is given as
$4.3055
This is further explained below.
What is the APR interest rate?Generally, The interest rate that is applied to a loan, mortgage loan, credit card, etc. is referred to as an annual percentage rate of charge, which sometimes corresponds to a nominal APR and sometimes corresponds to an effective APR.
The annual percentage rate of charge is the interest rate for the entire year, as opposed to just a monthly fee or rate. It is a fee for financing that is presented in the form of an annual rate.
Interest rate APR = 12%
Average balance = ((200*5)+(350*15)+(150*10))/30
Average balance = $258.33
Average balance*APR/12
Finance charge =\(\frac{258.33*20 \%}{12 }\)
Finance charge = $4.3055
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Which of the following is true about aptitudes?
aptitudes are inborn
aptitudes are learned
aptitudes can be categorized in mental, emotional, and physical groups
aptitudes are often revealed as you experience new things
Answers
Answer:
aptitudes are inborn
Explanation:
An Aptitude is an inborn ability to perform certain types of tasks. It is the natural talent that makes one good in a particular type of activity. Aptitude can be physical or mental.
Aptitude is the natural or inherent ability to do well in a certain field. It means that one can be very good in that field if given an opportunity to learn and develop. Aptitude tests help one find their strengths and develop a carrier based on their strong points.
Answer:
- aptitudes are often revealed as you experience new things - aptitudes are inborn - aptitudes can be categorized in mental, emotional, and physical groups.
Explanation:
did the test on edg and got it correct
As a(n) , it‘s up to you to make choices about what you buy and use.
Answers
As a consumer, it‘s up to you to make choices about what you buy and use.
What are consumers?Generally, A consumer is a person or group that uses a product or service. In economic terms, a consumer is someone who buys goods and services for personal use.
Consumer demand drives the economy, as businesses aim to produce and sell products that consumers want to buy.
Consumers also play a role in shaping the market by making purchasing decisions based on factors such as price, quality, and brand.
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CQ
As a(n)_____ , it‘s up to you to make choices about what you buy and use.
Vinita wants to buy raw materials from Vinita for her biscuit factory. She wants that Vamila should take payment after three months. As per the prevailing practice in this industry she can make payments within six months. Name and explain the source of finance which Vinita wants to use. Also explain two other sources of finance she can have for availing this facility
Answers
Vinita wants to use trade credit as the source of finance for purchasing raw materials from Vamila for her biscuit factory. Trade credit refers to the practice of allowing a buyer to delay payment for goods or services received.
What are the possible sources of finance for Vinita to avail the payment facility?Apart from trade credit, Vinita can explore other sources of finance to avail the payment facility. One option is to obtain a short-term bank loan specifically for covering the cost of raw materials. This loan can be repaid within the three-month period, aligning with Vinita's requirement.
Another source of finance could be using her own personal funds or savings to make the payment upfront to Vamila thereby eliminating the need for trade credit or external financing.
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Expenses that need to be paid before a new business can open are called _____.
operating expenses
ending inventory
start-up costs
beginning inventory
Answers
Answer:
start-up costs
Explanation:
Hopefully that helps.
Answer:
Start Up Costs
Explanation:
Im taking a business major this is the right answer
(PLEASE HELP) Why might someone choose to own a business rather than simply working as an employee at one? Compare and contrast the advantages and disadvantages that come with owning a business and discuss. Explore why you personally would or would not like to own a business one day.
Answers
Answer: Being a business owner can be extremely rewarding. Having the ... More importantly, you have the freedom to make the decisions that are crucial to your own business success.
Explanation:
:)
Hurry!!#3
Which of the following was a catalyst for consumer advocacy in the United States?
the Renaissance
the Enlightenment
the Civil Rights Movement
the Industrial Revolution
Answers
Answer:
the industrial revolution ; )
Explanation:
Because in the passage it talks about industries and how the people were changing them,
i also did it on edge!!!
Which of the following reflects Revenue after Deductions?
Answers
Answer:
Net income reflects the total residual income that remains after accounting for all cash flows, both positive and negative. In other words, from revenue, which is called the top-line number, all income, expenses, and costs are deducted to arrive at net income
NET INCOME
Explanation:
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what happens when ethanol is refluxed with acidified sodiumheptaoxodiochromate(4) solution for a long time
Answers
Answer:
1-butanol
Explanation:
in the case of multiple offers being received by the broker, the listing broker must a) present all offers at the same time. b) first present the offers produced in-house.
Answers
The listing broker is required to present all offers simultaneously in the event that the broker receives more than one.
What incorrect statement should the broker have been aware of in relation to a fact?False assertions of fact that have an impact on another party's choice regarding a contract are considered misrepresentations.
What else may a purchasing offer be called?Although "offer to purchase" is frequently used, the right phrase is "promise to purchase." It is a legal document in which the buyer offers the seller a formal contract to buy their property. The offer contains a proposed purchase price as well as a list of requirements that must be met for the deal to go through.
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Benjamin Franklin said, “Beware of little expenses. A small leak will sink a great ship. ” What does this mean to a person trying to build financial stability? How would you restate this saying so that it would be clearer to someone trying to grow a budget?
How would you place the order of these steps to build a budget? 1=first 2=the middle step 3=last
______Analyze cash flow and look for ways to increase your income and decrease your expenses....
______Keep track of your spending...
______Identify your income and your expenses....
What are they, and how would you explain their meaning? Give one example of each.
23.Fixed expenses
________________________________________________________________________
Flexible expenses
________________________________________________________________________
Money that comes to you from: Various jobs or work, like cutting grass or babysitting wages,
Full- or part-time employment, Allowances, Odd jobs, Interest and dividends, Other sources, including tips. Is known as your
_________________.
Where does All the money go?
If you are in the habit of buying the 4 for $4 meal special at the local famous fast food restaurant every day of the week for lunch how much would this add up over time? It might taste good going down but what might you be able to save for if you had all that cash in a savings account?
1 day 1 week 1 month 1 year 5 years 10 years
# of Days 26a 27a 28a 29a 30a 31a
4 for$4 Meal 26b 27b 28b 29b 30b 31b
Identify the LIE about Credit cards....
A. Are used to purchase goods and services.
B. Takes money from your checking account when used to pay for purchases.
C. Are subject to interest charges if the balance is not paid in full each month.
Credit Verses Debit
Which card requires you to have enough money at the time you pay for something?
Which card's balance can increase and accrue charges if you do not pay the entire amount each month?
Which card generally offers purchase protections against faulty goods?
Which card(s) may have fees associated with them?
Which card allows you to pay for unexpected emergencies when you do not have enough money?
What are the outcomes to be expected with overspending on your credit card? You need at least two outcomes for full credit
Debit to Income Ratio
After adding your total income, dividing the total monthly bills by the total income, and convert that to a decimal….What would you advise these individuals who are contemplating a large purchase?
Total Income
Total Monthly Bills
Percentage (divide by 100)
Billy $4000
$2800
?
TiQuan $5000
$4000
?
Nadaja $3000
$1000
?
39 (Billy). ________________________________
40 (TiQuan) ______________________________
41 (Nadaja) ______________________________
Which payment arrangement has the worst deal or the higher interest rate you must pay between the instalment loan or the rent to own arrangement?
What three things would you likely need an installment loan to purchase?
Explain how your credit rating would affect your interest rate applied to your installment loan.
Simply put, Finance is the management of ______________________.
Name 2 examples of items that fall under the category of a long-term financial goal.
47.Name 2 examples of items that fall under the category of a short-term financial goal.
48.. Which of the following statements about investing is FALSE?
On average, investing money in the stock market earns a higher return than putting money in a savings account.
Investing is best for long-term financial goals, like paying for retirement.
Investing is a guaranteed way to grow your money.
Investing is riskier than putting money in a savings account.
This is needed To Calculate Simple Interest (Interest = Principal x Rate x Time or I = P x R x T)
Remember to add the Simple Interest to the Principle to get the total to be paid.
Principle
Rate
Time
Interest
Total to be paid
$10,000
15%
5 years
49a
49b
$5,000
5%
8 years
50a
50b
is the purpose of financial insurance agencies?
Answers
Answer: n or f
Explanation:
Who is the presenting partner of sbj’s all in conference on diversity, equity and inclusion?.
Answers
The presenting partner of SBJ's All In Conference on Diversity, Equity and Inclusion is Eli Lilly and Company.
This conference is aimed at promoting diversity and inclusivity in the sports industry and is hosted by the Sports Business Journal. The event is focused on providing practical solutions to promote diversity and inclusion in sports organizations, with discussions and panels led by industry experts. The conference is an important platform for sports industry professionals to come together and share insights, strategies, and best practices for creating a more diverse and inclusive environment in sports. Eli Lilly and Company's partnership demonstrates their commitment to supporting diversity and inclusion initiatives and promoting equality in the sports industry.
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does the business have a maryland unemployment insurance account number?
Answers
Answer:
You can find your ten-digit Maryland Employer Account Number on any notice received from the MD Department of Labor, Licensing and Registration, Division of Unemployment Insurance. Your account number will likely start with 00 or 01.
Explanation:
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. Suppose the market for personal computers in country A is monopolistically competitive. Country A exports as well as imports personal computers from the rest of the world. After full adjustment to the opening of trade, a firm in this industry which enjoys scale economies will: A. receive a higher price for its product. B. receive a lower price for its product. C. enjoy a greater market share. D. ultimately go out of business. __________ 16. The clustering of
Answers
Answer: B. receive a lower price for its product
Explanation:
Monopolistic competition is a market structure whereby the elements of both monopoly and competitive markets are combined. In such market structure, there are many producers in the market but they're selling differentiated products.
In this case, due to the fact that there's freedom of entry and exit, there'll be more firms coming into the market due to the supernormal profit which is made at first but in the long run, a lower price will be received for goods and services as there are many sellers in the market. Therefore, a normal profit will be made.
Which two of the following are long-term sources, of finance?
A- Interest rates
B- Venture capital
C- Trade credit
D- Share capital
E- Start up costs
Answers
Answer:
the answer is B and D
Devon was surprised that his pay check was less than he had expected. His
paycheck was reduced because
had been withheld by his employer.
OA. incentives
B. commissions
C. gross pay
OD. deductions
Answers
The answer is C. Gross pay. Devon's paycheck was reduced because it had been withheld by his employer as gross payment.
"Gross pay" mean?Before any taxes, benefits, or other payroll deductions are done , an employee's gross salary is what they are paid. Net pay, often known as take-home pay, is the amount that is given after all withholdings have been taken into consideration.
Calculate my gross pay?Start by determining the total amount need for each pay period in order to see an employee's gross compensation. Hourly workers multiply their total hours worked by their hourly rate, plus any overtime. Employees on a salary split their yearly earnings by the number of pay periods.
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The procedure requiring preparation of a prelisting of incoming cash receipts, with copies of the prelist going to the cashier and to accounting, is an example of which type of control? A. Detective. B. Corrective. C. Preventive. D. Directive.
Answers
The procedure requiring preparation of a prelisting of incoming cash receipts, with copies of the prelist going to the cashier and to accounting, is an example of a preventive control. Option C.
Preventive controls are designed to prevent errors or fraud from occurring in the first place. By having a prelisting of incoming cash receipts, the company can ensure that all cash received is properly accounted for and that any discrepancies can be detected early on. This helps to prevent any potential fraud or errors from occurring.
Additionally, the copies of the prelist going to both the cashier and accounting ensure that there is a separation of duties, which is another important aspect of preventive controls. By having different individuals responsible for different aspects of the accounting process, the company can reduce the risk of fraud or errors occurring.
In contrast, corrective controls are designed to correct errors or fraud after they have occurred, while detective controls are designed to detect errors or fraud after they have occurred.
Directive controls, on the other hand, are focused on directing or guiding individuals in their job duties, rather than preventing or correcting errors or fraud. So Option C is correct.
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Have $54,118.54 in brokerage account, and plan to deposit additional $3000 at the end of every future year until account totals $210,000. Expect to earn 10% annually on the account. How many years will it take to reach goal?
Answers
Answer:
11 years
Explanation:
PV= 54,118.54
FV= 210,000
I/Y= 10
PMT= 3000
N = ?
Number of years = N(Rate, -Pmt, -Pv, Fv)
Number of years = N(10, -3000, -54,118.54, 210,000)
Number of years = 10.9999949
Number of years = 11
If a company sold $700 worth of goods, paid $400 worth of salaries, and
spent $200 in advertising during a period, what will the income statement list
as the net income or loss?
A. $900 loss
B. $900 income
C. $100 loss
D. $100 income
SUBMIT
Answers
Answer: $100 income
Explanation:
they got $700. then they bought $400 worth of salary, meaning 700-400=300.
300-200=100.
they are left with $100
CAN SOMEONE HELP ME PLEASE?!
What are 2 of the goals in American Free Enterprise Economic System?
Answers
Answer: The free enterprise economy seeks to maintain economic freedom. As mentioned earlier, the goal is for businesses to be able to make their own decisions with little government interference. Efficiency - The goal of efficiency is to make the best use of the resources that are available.
different levels of planning in supply chain operations management include
Answers
The different levels of planning in supply chain operations management are as follows strategic planning, Tactical planning and operational planning
he three levels of planning in supply chain operations management are:
1. Strategic planning: Long-term objectives are defined, and resource allocation and decision-making procedures are established. Strategic planning is concerned with the formulation of long-term goals and objectives for an organization and determining the resources needed to achieve them. Strategic planning for the supply chain aims to establish and maintain a competitive advantage over rivals by developing and implementing innovative procedures.
2. Tactical planning: This type of planning is concerned with the medium-term objectives that must be achieved to support the long-term strategic goals established in the previous stage. It is concerned with the allocation of resources to various components of the supply chain, as well as the establishment of performance metrics and the identification of potential improvement opportunities.
3. Operational planning: This form of planning involves the preparation of specific activities, timetables, and performance metrics that must be followed to execute the tactical plan. It is concerned with the allocation of resources, as well as the identification and resolution of operational issues. It is concerned with the day-to-day activities and decisions necessary to achieve the organization's goals and objectives.
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Which savings account will earn you the most money?
1.One that earns simple interest monthly.
2.One that compounds interest daily.
3.One that earns simple interest daily.
4.One that compounds interest monthly.
Answers
Answer:
one that earns simple interest daily
The savings account that earn you the most money is: 3.One that earns simple interest daily.
What is savings account?
Savings account is an account that enables you to save while you earn interest on the amount saved reason being that saving account is an interest earning account.
A saving account that gives you simple interest daily is the best as it will enable to accumulate more interest.
Therefore the savings account that earn you the most money is: 3.One that earns simple interest daily.
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How is international employment different from foreign employment? Give your argument with examples.
Answers
Answer:
Foreign employment is working for a company that is based in another country and you usually only work in one country. International employment is working in multiple countries and often your own home country is one of them
Which statement best illustrates the relationship between three different
elements of the circular flow of products?
A. Product markets offer labor to businesses, which creates jobs for
households.
B. Resource markets sell goods to product markets, which sell the
goods to businesses
C. Households pay wages to businesses, which can then set up
product markets.
D. Businesses create goods for product markets, which sell them
directly to households.
Answers
Answer: is D
Explanation:
The statement, businesses create goods for product markets, which sell them directly to households, is best illustrates the relationship between three different elements of the circular flow of products.
What is a circular flow?
The most popular version of this model displays the circular flow of revenue between the consumer and business sectors. The product market and the resource market are placed between the two.
Consumer spending is the mechanism through which households' money flows to the market for goods and services when they are in need of them. The product market purchases goods and services from companies and sells them to households, making a profit.
As a result, option (d) is correct.
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Finance using appropriate and actuarial method
Answers
9Answer: it
Would be around 80
Explanation:
done
which of the following is not an element of structural quality in child care programs
Answers
Answer:
The correct answer is ''Parent-caregiver relationships.''
Which ofthe following accounts are usually transferred to the Income Statement? *
1 point
a. Rent, premises, drawings
b. Drawings, rent, purchases
c. Commission received, rent, purchases
d.Purchases, furniture, commission received
Answers
Answer:C
Explanation:It is C because to get your commission they need to transferred to your Income Statement and for rent they need to know that you can afford to live there.To purchase big stuff they gotta look at your income to buy it.
1. A company is creating a new product and must determine how to effectively create the product as well as appeal to the market and target a wide range of customers.
Answers
Answer and Explanation:
One good way to know how to effectively create a product and also target quite a wide range of consumers is to watch out for trends. Through the internet and social media, a producer can tell what product consumers would be ready to buy at a certain period due to the fact that it is what is trending at that time. The producer could go ahead to add new features to the product to make it stand out for potential customers.
.
The information regarding the new product should be explained in the explanation part.
The following information should be considered:
There is one good way for knowing how to effectively develop a product and also there is a wide range of consumers is to watch out for trends.By using the internet and social media, a producer can tell what product consumers would be ready to purchase at a specific period.Learn more: https://brainly.com/question/25300841?referrer=searchResults
A winning strategy must pass three tests:
1. The fit test.
• Does it exhibit good fit with the external and internal aspects of the firm's dynamic situation?
2. The competitive advantage test.
• Is it likely to result in a sustainable competitive advantage?
3. The performance test.
• Is it producing superior performance, as indicated by the firm’s profitability, financial and competitive strengths, and market standing?
Keeping what you read in mind, answer the following questions. Use AMAZON
1. How does Amazon utilize these strategies?
2. Discuss if Amazon is successful or not in how they implement their strategy.
3. If you could add one more strategy for this company, what would it be, and how would you implement and evaluate?
Answers
Amazon definitely uses best fit with market situations.
Amazon has a culture of testing ideas rigorously and then doubling down on the things that are effective. And as a company that’s not afraid to fail, and will put money on the line to develop a product or service, even if the product poses some risk of failing.
In an enterprise, an aggressive advantage is an attribute that lets an organization outperform its competition. A competitive advantage might also encompass getting entry to herbal sources, which include high-grade ores or a low-price electricity source, relatively skilled hard work, geographic area, excessive access barriers, and get entry to a new era and to proprietary information.
Competitive gain is the leverage an enterprise has over its competition. this may be won by way of providing clients with better and greater value. advertising services or products with decreased charges or better exceptional piques the interest of clients. that is the motive at the back of emblem loyalty, or why customers prefer one unique service or product over another. fee proposition is essential when know-how competitive gain.
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Look at the following statements. Choose the one correct answer.
Online bill paying can make a lot of sense.
You cannot overdraw your account with online bill paying.
Checking accounts can (and should) be linked to savings accounts.
Both A and C.
Answers
The following statements should be considered true:
When the bill is paid online so it makes understandable.The checking account should be connected with the saving accounts.The following information should be considered:
The account could be overdrawn when the bill is to pay online.When the bill is to be paid online so it is understandable.Also, the checking account could be connected with the saving account.Therefore, we can conclude that both A and C are correct.
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