BUSINESS HIGH SCHOOL

Smith Company produces and sells one product for $40 per unit. The company has no beginning inventories. Its variable manufacturing cost per unit is $18 and the variable selling and administrative expense per unit is $4. The fixed manufacturing overhead and fixed selling and administrative expense total $80,000 and $20,000, respectively. If Smith Company produces 8,000 units and sells 7,500 units during the year, then its net operating income under variable costing would be

Answers

Answer 1
Answer:

Answer:

$35,000

Explanation:

net operating income under variable costing would be calculated by preparing income statement under variable costing.

Smith Company

income statement under variable costing system

Sales (7,500 x $40)                                                          $300,000

Less Cost of Sales (7,500 x $18)                                     ($135,000)

Contribution                                                                       $165,000

Less Expenses

selling and administrative expense ($4 x 7,500)            ($30,000)

fixed overheads :

manufacturing                                                                   ($80,000)

selling and administrative expense                                 ($20,000)

Net Income                                                                         $35,000
Answer 2
Answer:

Final answer:

The net operating income under variable costing for Smith Company is $24,000.

Explanation:

The net operating income under variable costing can be calculated by subtracting the variable manufacturing cost per unit, variable selling and administrative expense per unit, and the total fixed manufacturing overhead and fixed selling and administrative expense from the total revenue.

Variable cost per unit = Variable manufacturing cost per unit + Variable selling and administrative expense per unit = $18 + $4 = $22

Total revenue = Selling price per unit × Number of units sold = $40 × 7,500 = $300,000

Total variable cost = Variable cost per unit × Number of units produced = $22 × 8,000 = $176,000

Total fixed cost = Fixed manufacturing overhead + Fixed selling and administrative expense = $80,000 + $20,000 = $100,000

Net operating income under variable costing = Total revenue - Total variable cost - Total fixed cost = $300,000 - $176,000 - $100,000 = $24,000

Learn more about Net operating income here:

brainly.com/question/33014836

#SPJ3

Related Questions

- Strategic planning as a broad concept consists of A) Corporate strategy and business strategy B) Strategy formulation and strategy implementation C) Inputs and outputs D) Environmental analysis and internal analysis
In the context of the various roles employees take up in an organization, who among the following is most likely to spend a lot of their time listening?
Natalie operates on a pretty tight budget. she is a price-conscious shopper and usually buys store or generic brands to save money. recently, however, natalie was given a pretty substantial raise. as such, she has altered her shopping patterns and now regularly buys more expensive, name-brand goods. this is an example of
The main challenge of career planning in changing times is that
An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?

When selecting a savings account, you should look at the following factors except _____.

Answers

When you select a savings account, you should look at the following factors:

1) Bank of account. This is where you open your savings account. You need to know the reputation and performance of the bank. This way, you'll know if your savings will be well taken cared of.
2) Interest rate. The higher interest rate, the better
3) Location. Easier to open a savings account on the bank nearest to you.
4) Accessibility. Easier to contact the bank with your concerns either through a phone call or an online message.

If productive efficiency characterizes a market A. the output is being produced at the lowest possible cost.
B. firms use the best technology available to produce the good.
C. firms produce the goods that consumers desire most.
D. the marginal cost of production is minimized.

Answers

Answer:

A. the output is being produced at the lowest possible cost.

Explanation:

Productive efficiency is a situation where the economy or economic system can not produce any more goods without sacrificing the production of other goods. Consumers benefit from these cost-efficient methods of production. Also, essentially, productive efficiency means that the product is being produced with as few scarce resources as possible thereby enabling society to spread its scarce resources across more products.

Final answer:

Productive efficiency refers to a scenario in the production process where output is generated at the lowest possible cost. It does not necessarily imply utilizing the best technology, producing the most desired goods, or minimal marginal cost of production.

Explanation:

If we talk about productive efficiency, it typically signifies a scenario in the market where goods produced at the lowest possible cost. It is a situation in which a entity cannot produce more of one good without sacrificing production of another good and is directly linked with the concept of a Production Possibility Frontier (PPF). Therefore, the correct answer is A. the output is being produced at the lowest possible cost.

It's crucial to note that while this definition of productive efficiency refers to the lowest cost, it does not necessarily imply using the best technology available (B), producing the goods consumers desire most (C), or minimizing the marginal cost of production (D).

Learn more about productive efficiency here:

brainly.com/question/38848015

#SPJ3

What is the last step in the medical billing cycle?

Answers

The last step of medical billing cycle is the Follow up payments and collections.
The first one usually is to Pre-register the patient
Second - Establish Financial responsibilityc
Third - Check in patient 
Followed by the checkout of patient
and so on until the last part of the process,

A match is an example of something that stores what?

Answers

Something that stores chemical energy

When a match is struck, it's chemical compounds will be activated, producing Heat and light energy

Which of the following best describes a highly leveraged firm? A firm that relies heavily on equity A firm that has higher current assets than current liabilities A firm that has twice more equity than debt A firm that relies heavily on debt

Answers

A firm that relies heavily on debt are the firm that describe a highly leverage firm. Highly leveraged firm refer to a firm that depends on borrowed capital. They have higher debt that equity. Their debt is what they considered as asset.

Mark is an excellent cook. He does not have any formal training but learned to cook by following the recipes of several famous chefs and his mom. Every weekend, he invites friends over for dinner so he can try new dishes and get honest feedback from his friends. Mark wants to start his own restaurant someday because he thinks he would be successful and become wealthy. Which of Adam Smith’s ideas made Mark think of starting a restaurant?A.invisible hand
B.self-interest
C.competition
D.laissez-faire

Answers

A invisible hand is the answer.

thats the wrong answer
Other Questions
6. The money multiplier formula shows effects ofA. a cash deposit into banking system on the money supply B. low interest rates on creditors over a long period C. federal reserve discount rate reductions on the bond markets D. a required reserve ratio on excess reserves I need help on this, Unit 6 Lesson 10, please. CCA
Ford motor company sells the fusion ses for $24,400. the fusion hybrid sells for $29,975. what is the percentage increase in price for the hybrid over the fusion ses? (round to tenth.)
Quote from the scenario four challenges faced by the music industry
Bob consumes food and housing. Suppose his marginal utility from an additional unit of food is 20 and his marginal utility from an additional unit of housing is 100. ​ Furthermore, suppose the price of a unit of food is ​$1.00 and the price of a unit of housing is ​$2.00. Can Bob increase his utility without changing his total expenditures on food and​ housing? Holding expenditures​ constant,A. Bob can increase utility by spending more on food and the same amount on housing. B. Bob cannot increase his utility C. Bob can increase utility by spending more on food and less on housing. D. Bob can increase utility by spending more on food and more on housing. E. Bob can increase utility by spending less on food and more on housing.