1 answer

Company X currently has annual sales of $10,000,000, its variable costs are 55% of sales and...

Question:

Company X currently has annual sales of $10,000,000, its variable costs are 55% of sales and total fixed costs $3,000,000. By
Company X currently has annual sales of $10,000,000, its variable costs are 55% of sales and total fixed costs $3,000,000. By how much will Company X's annual operating income increase if current sales increase by 12%?

Answers

Net Income when sales = $10,000,000.

Net Income = (Sales - Variable cost ratio ) - Fixed expenses => ($10,000,000 - 55%) - $3,000,000 = $1,5000,000.

When sales increases by 12%.

Revised sales = $10,000,000 + 12% = $11,200,000.

Particulars At Sales Sales less : Variable cost (55% of sales) Contribution Margin less : Fixed Expenses Net Operating Income

If you have any doubts please comment on the answer.

.

Similar Solved Questions

1 answer
Plzzzz answer and show work for all the questions below. including all free body diagrams. П....
Plzzzz answer and show work for all the questions below. including all free body diagrams. П. On a river bank, Point B is 6.0 km downstream from Point A. Two friends must make the round trip from Point A to Point B and then return to Point A. One rows a boat at a constant speed of 8.00 km/h...
1 answer
QUESTION 4 2 m/s B 3 m/s А *4 F. The cars A and B in...
QUESTION 4 2 m/s B 3 m/s А *4 F. The cars A and B in Fig. each have a mass of 150 kg and are coasting with the velocities shown before they freely collide head on. If no energy is lost during the collision, determine their velocities after collision...
1 answer
Consider the titration of a 27.0 −mL sample of 0.170 M CH3NH2 with 0.155 M HBr....
Consider the titration of a 27.0 −mL sample of 0.170 M CH3NH2 with 0.155 M HBr. Determine each of the following. Part A the initial pH Express your answer using two decimal places. pH = SubmitMy AnswersGive Up Part B the volume of added acid required to reach the equivale...
1 answer
How do you differentiate # y =-(e^(x-sin^2x)# using the chain rule?
How do you differentiate # y =-(e^(x-sin^2x)# using the chain rule?...
1 answer
Homework=5427816345question218 ushed false&cid=56909578 centerwinyes STA2023/1ACSATURDAY-FALL-2019 Claudia valvis 11/01 Homework: HOMEWORK # 4 core: 0 of 1...
homework=5427816345question218 ushed false&cid=56909578 centerwinyes STA2023/1ACSATURDAY-FALL-2019 Claudia valvis 11/01 Homework: HOMEWORK # 4 core: 0 of 1 pt 3.4.16-T 12 of 3528 complet HW Score: 71.43%, 25 of 35 The weights of a certain brand of candies are mad e with a man weight of 02 ganda ...
1 answer
A shopper standing 2.24 m from a convex security mirror sees his image with a magnification...
A shopper standing 2.24 m from a convex security mirror sees his image with a magnification of 0.288. Determine the following. (Indicate the directions with the signs of your answers.) (a) location of his image (b) focal length of the mirror (c) radius of curvature of the mirror...
1 answer
✓ Correct The following diagram represents the reaction of A2 (red spheres) with B2 (blue spheres):...
✓ Correct The following diagram represents the reaction of A2 (red spheres) with B2 (blue spheres): (Figure 1) - Part 6 Figure How many moles of product can be made from 1.0 mol of B2? Express your answer using two significant figures. YAXDO ? mol Submit Previous Answers Request Answer X Inco...
1 answer
Please show ALL work and steps as they are very important to me solving this problem....
Please show ALL work and steps as they are very important to me solving this problem. Explanations would greatly be appreciated as well. Find the Taylor polynomial T3(x) for the function f centered at the number a. (x) = In(3x) a = 6x 13 T3(x) = Graph fand T3 on the same screen. 0.5 10.5 -10 -01 05 ...
1 answer
Thoroughly showing how to do each problem and the answers with the steps A sample of...
thoroughly showing how to do each problem and the answers with the steps A sample of 146 men was taken and it was found that 57 owned cats A sample of 132 women was taken and it was found that 37 owned cats. Test the claim that the proportion of men who own cats is different from than the proportio...
1 answer
20) The density of a block of iron is 7,860 kg/m². The density of mercury is...
20) The density of a block of iron is 7,860 kg/m². The density of mercury is 13,950 kg/m² This block of iron will: a) float in mercury b) sink in mercury c) hang motionless in mercury d) none of the above...
1 answer
Please explain step by step how you got the answer. 57. Three parachutists, A, B, and...
please explain step by step how you got the answer. 57. Three parachutists, A, B, and C, each have reached termi- nal velocity at the same distance above the ground below. A 50 kg BA,40 kg c 75kg a. From fastest to slowest, rank their terminal velocities. b. From longest to shortest, rank their time...
1 answer
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehenslve analysis of the company's financial statements, including comparing Lydex's performance to its major competitors. The company's financia...
1 answer
Chapter 19 Corporate Organization Exercise Kathy and Carl formed a corporation by each contributi...
Please show your work Chapter 19 Corporate Organization Exercise Kathy and Carl formed a corporation by each contributing an asset with a FMV of $50,000 for half of the stock in the corporation. Prior to the transfer, Kathy had an adjusted basis of $40,000 in her asset and Carl had an adjusted basis...
1 answer
On January 1, 2018, Hoosier Company purchased $944,000 of 10% bonds at face value. The bond...
On January 1, 2018, Hoosier Company purchased $944,000 of 10% bonds at face value. The bond market value was $987,000 on December 31, 2018. Required: Prepare the appropriate journal entry on December 31, 2018, to properly value the bonds assuming the bonds are classified as: (If no entry is require...
1 answer
An ideal gas is allowed to expand isothermally until it reaches its final volume. It is...
An ideal gas is allowed to expand isothermally until it reaches its final volume. It is then heated at constant volume until it reaches its final pressure. The initial state of the gas is P1 = 2.93 atm, V1 = 1.00 L, and Eint 1 = 414 J, and its final state has volume V2 = 2.93 L and Eint 2 = 951 J. 1...