Yams Company reports the following operating results for the month of August: sales $400,000 (units 5,000), variable costs $240,000, and fixed costs $90,000. Management is considering the following independent courses of action to increase net income.

1. Increase selling price by 10% with no change in total variable costs or units sold.
2. Reduce variable costs to 55% of sales.

Required:
Compute the net income to be earned under each alternative. Which course of action will produce the higher net income?

Answers

Answer 1

Answer:

Yams Company

Alternative 1: Increasing the selling price by 10% with no change in total variable costs or units sold will produce the higher net income.

Explanation:

a) Data and Calculations:

                                                          Total         Unit   Quantity

Sales for the month of August = $400,000     $80        5,000

Variable costs =                            $240,000       48        5,000

Fixed costs =                                  $90,000

Alternatives to increase net income:

                                       Alternative 1        Alternative 2

Sales revenue                  $440,000            $400,000

Variable costs                    240,000              220,000

Contribution margin       $200,000             $180,000

Fixed Costs                         90,000                 90,000

Net income                      $110,000               $90,000


Related Questions

Are the consequences of your decision something you can live with and feel proud of when other people find out? Why or why not?

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At the end of the day people need to respects everyone’s decisions because it always has consequences depending on what they did , if someone is doing so good then they should feel proud it can be so many things it could be people that have mental issues and it stops them from doing some stuff but then they do something for them to feel good breaking the cycle , like there’s other who choose to do bad stuff now some people think is okay but it’s really not and consequences will always be there

To help reduce firefighting in network management, a network manager should spend time on ____________ to prevent problems

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Answer:

Planning and Organizing the Network and Networking Staff

Explanation:

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Help me please

With one worker, total production is 100. When a second worker is added, total product

increases to 300. The marginal product of the second worker is ….???
100.

200.

400.

300.

Answers

Total production is 100

let the product of second worker be x

then 100+x = 300

x = 200

The marginal product of the second worker is 200

You receive a $15,000 signing bonus from your new employer and decide to invest it for 2 years. Your banker suggests two alternatives, which both require a commitment for the full 2 years. The first alternative will earn 8% per year for both years. The second alternative earns 6% for the first year and 10% for the second year. Interest compounds annually. Which would you choose? Justify your choice by the calculations.

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Answer:

8% plus 8%

Explanation:

8% plus 8% will yield 16.64% total and the 6% and 10% yields 16.60% total

A 7-year, $1,000 par bond has an 8% annual coupon and is currently yielding 7.5%. The bond can be called in 3 years at a call price of $1,010. What is the bond yielding, assuming it will be called (known as the yield to call)?

Answers

The Yield to call is 7.30%

Par value of Bond (FV) = $1,000

Annual Coupon (A) = 8%*1,000 = $80

Years until maturity = 8

Current YTM = 7.5%

We need to calculate the Current Price of Bond (PV)

PV = 80 * (P/A, 0.075, 7) + 1000 * (P/F, 0.075, 7)

PV = $1,026.48

Call Price = $1,010

Call Period = 3 years

Yield to call = ytc

1026.48 = 80* (P/A, ytc, 3) + 1010 * (P/F, ytc, 3)

Using the trail and error method,

Yield to call = 7.30%

In conclusion, the Yield to call is 7.30%

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who here has a business plan




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I am still working on my business plan.

1. What is the relationship between employment and education? Explain.​

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Explanation:

I don't know sore

sorry broo plz.

Which of the following financial statements is also called a profit and loss statement?

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Answer:

Also known as the profit and loss statement or the statement of revenue and expense, the income statement primarily focuses on the company's revenues and expenses during a particular period.

A group of 10 golfing buddies have the following annual incomes: $32,000, $12,000, $56,000, $120,000, $10,000, $38,000, $70,000, $16,000, $20,000, $24,000. The share of income received by the lowest quintile of this income distribution is

Answers

The lowest quintile received $22,000.

Data and Calculations:

The number of golfing buddies = 10

A. = $10,000

B.  = $12,000

C.  = $16,000

D.  = $20,000

E.  = $24,000

F.  = $32,000

G.  = $38,000

H.  = $56,000

I.  = $70,000

J.  = $120,000

Total - $398,000

The lowest, first, or bottom quintile is between 0 to 20%.

Thus, the lowest quintile received $22,000 ($10,000 + $12,000) from the income distribution.

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Suppose the economy is in long-run equilibrium. If there is a sharp increase in the minimum wage as well as an increase in taxes, then in the short run, real GDP will:____.
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b. fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected.
c. rise and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be lower.
d. fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected.

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Suppose the economy is in the long run equilibrium. If there is a sharp increase in the minimum wage as well as an increase in taxes then in the short run, real GDP will

fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be lower.

Given that this economy is in the long run equilibrium. Given a sharp increase in minimum wage and taxes, then real GDP will decrease in the short run as well as the price level.

In the long run it may stay the same. But the Real GDP will definitely be lower.

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When a consumer is making more money, the demand curve shifts to the right. Why is this?

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The demand curve shifts to the right because the consumer is able to afford larger quantities of the product. I believe the answer is C.

What is Ministry of Freedom ?

The Ministry of Freedom Program was founded by Jono Armstrong who is a successful affiliate, generating 8-figure income. He's developed this full training + mentoring + coaching program to help others to achieve similar success.

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Answer:

The Ministry of Freedom Program was founded by Jono Armstrong who is a successful affiliate, generating 8-figure income. He's developed this full training + mentoring + coaching program to help others to achieve similar success.

Which is not an advantage of a savings account?
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B. The FDIC insures your savings against loss.

C. Savings accounts have low interest rates.

D. Savings accounts earn interest.

Answers

Answer:

C. Savings accounts have low interest rates.

'Savings accounts have low interest rates,' is not an advantage of a savings account.

What is a savings account?

A savings account is a deposit account that lets you deposit money safely with a bank. It also ensures safety and access to your money whenever you need. You can withdraw your money, either digitally or in person, at any point in time, from your savings account.

In savings accounts, interest can be compounded, either by daily, monthly, or quarterly means and you can earn interest based on that. In exchange for the ease and liquidity that savings accounts offer, one earns a lower rate than that paid by more restrictive savings instruments and investments.

Why does a savings account offer low interest rates?

When rates on loans are low, banks like to keep savings account rates even lower so that they can continue making money on them. Another reason of low interest rates is that, the RBI has slashed the repo rate from 6.25% to 6% on cues of low inflation.

Thus, this has enabled banks to get funds from RBI at lower interest rates. So this leads to the reduction of the interest rates on savings accounts and fixed deposits for its customers.

Hence, option C is correct.  

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2. Why do many people have a fraught relationship with money

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People have a fraught relationship with money due to the anxiety that comes with it and the fear that it might run out.

People have a lot of judgment, it does not matter if they have a lot of cash or if they do not. A lot of people do not have a good relationship with money because of the fact that money makes them anxious.

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What is General training?​

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Answer:

The training focusing on the theoretical knowledge is called general training.

Answer:

What is General training?

General Training measures English language proficiency in a practical, everyday context.

If you liquidate $3,000 of your money market mutual fund and transfer the funds to your checking account, then initially, M1 will ________ and M2 will ________. Group of answer choices

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if one liquidate $3,000 of one's mutual fund and transfer them to checking account, then, the M1 will increase and M2 will not increase

Liquidation in this case refers to transfer of mutual fund to one's accessible account for personal use.

Let understand that M1 in money supply includes physical currency, demand deposits, checkable deposits.

M2 in money supply includes cash, checking deposits, easily convertible near money.

In conclusion, if one liquidate $3,000 of one's mutual fund and transfer them to checking account, then, the M1 will increase and M2 will not increase

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Which of the following is not a product design objective? Make the design easy to track for cost accounting purposes. Design a quality product. Design a product that meets customer requirements. Minimize production costs.

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Amongst the options provided in the question, "Make the design easy to track for cost accounting purposes" only is not a product design objective.

Product Design

It is a process that requires cross-functional and knowledge-intensive work, which has become more demanding in today's competitive world.

It is set as one of the key strategies firms need to succeed in the market. These firms develop unique products using this process, as it provides them with the opportunity to set premium prices due to the uniqueness of the product.

Product Design Objective

For this process to succeed, the objective of the product design is, therefore, to produce goods or services with high quality, keeping the prices of the materials and the methods required to produce them at an acceptably low cost. Finally, the product must be competitive in the market in terms of its price, quality, design, and functionality. Thus making it meet the customer needs/wants.

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What is one major measure of economic growth?

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Answer:

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The Bruin's Den Outdoor Gear is considering a new 7-year project to produce a new tent line. The equipment necessary would cost $179 million and be depreciated using straight-line depreciation to a book value of
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Answers

add 5495,000 and 233,ooo I hope this helped

According to this question, the NPV is $519,084.61 of this project calculating through Net Present Value formula.  

What is Net Present Value?

Net Present value is a tool of capital budgeting which is used for financial analysis and the profitability of a project or investment.

Net Present Value is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time.

For every organisation, it is an important factor to calculate this it may help to take decisions regarding the expansion of business and investment very wisely.

Therefore,

Net Present Value = Rt / (1+i) t

where,

Rt = net cash flow

i = discount rate

t = time of cash flow

So, NPV is $ 519,084.61

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Your uncle is offering to sell you his T-shirt printing business for $1M. You think a multiple of 10X earnings (profit) is fair. His earnings are $69,000 per year. Should you buy it?

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No because it is to expensive and the modern outfits are changing relatively quickly

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Danielle is a cosmetologist who specializes in hair color. What skill might benefit Danielle in her career?

Question 10 options:

Danielle enjoys working alone.


Danielle likes math and solving puzzles.


Danielle is friendly and outgoing.


Danielle is competitive and likes sports.

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Answer: Danielle is friendly and outgoing

Explanation: she works with other people and specializes on people’s hair color

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When store owners quote prices in terms of dollars, money is acting as a unit of account.

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Since there are many buyers and sellers in a country, unit of account stands as standard measurement for everyone in an economy; hence the foundation of every transaction in an economy.

Therefore, money is acting as a unit of account when store owners quote prices in terms of dollars.

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To be useful, accounting information must have the fundamental qualitative characteristics of?

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relevance and faithful representation

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1. The standard cost for material per output unit is $30 ($10 x 3).

2. The total inputs allowed for actual outputs achieved is 21,000 units (7,000 x 3).

3. The total actual direct material used for actual output is 28,000 units (7,000 x 4).

4. The material price variance is $28,000 Favorable {($10 - $9) x 28,000}.

5. The material efficiency variance is $70,000 Unfavorable (21,000 - 28,000) x $10.

6. The flexible budget variance is $28,000 Favorable ($280,000 - $252,000).

7. The item that would never appear on a cash budget is the Depreciation Expense.

Data and Calculations:

Standard units of input materials = 3 units

Average cost of a unit of materials = $10

Total cost of 3 units = $30 ($10 x 3 per unit output

Actual production = 7,000 units

Flexible units of materials = 21,000 units (7,000 x 3)

Actual units of materials used = 28,000 units (7,000 x 4)

Actual cost of materials purchased = $9 per unit

Thus, depreciation expense does not involve a cash flow.

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Grand Thornton's print ad states, "If you have a passion for accounting and want to work with others who share that passion, you might be interested in the Grant Thornton accounting firm." This ad is an example of

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The printed ads of Grand Thornton is an example of corporate image advertising.

Basically, a corporate image advertising is a form of advertisement done when the firm promotes itself in order to

portray positive perceptionincrease its brand awarenessappear relevant.

In conclusion, the printed ads of Grand Thornton is an example of corporate image advertising.

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The ________ method of setting an advertising budget typically overlooks how promotion affects sales.

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Based on business management, the affordable method of setting an advertising budget typically overlooks how promotion affects sales.

What is the Affordable method in the Advertising budget?

The affordable method in the advertising budget is the cheap means of making an advertisement.

However, when making cheap or affordable advertisements, most people tend to overlook the effects of promotion efforts on sales.

Hence, in this case, it is concluded that the correct answer is "Affordable method."

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Would you want to work for a company that has chosen to be a conscious marketer? Why or why not? Support your decision by discussing at least one positive and one negative about working for this kind of company.

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Answer:

You would want to work for one because it had a lower chance of getting closed or loosing money. A positive is wiser spending. A con is not taking all the risks.

Explanation:

Hope this helps!

Jimmie is purchasing a home with a purchase price of $350,000. He has been approved for a loan with an 85% LTV. What is his down payment

Answers

Based on the information given the down payment is $52,500.

Using this formula

Down payment=(100%-Approved loan percentage)×Purchase price

Where:

Approved loan percentage=85%

Purchase price=$350,000

Let plug in the formula

Down payment=(100%-85%)×$350,000

Down payment=15%×$350,000

Down payment=$52,500

Inconclusion the down payment is $52,500.

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As a high school student, which of the three error types would you be most concerned about? Why?

Answers

The three error types i would be most concerned about is wrong address, misspelled name and wrong name because they could lead to lower credit scores

The error in this context related to credit report errors which can happen while been a high school student.

Credit report refers to the organized record database of borrower's credit history from different sources.

Based on statistics, the student responded that the error they are most concerned about includes:

Wrong AddressMisspelled NameWrong Name.

Hence, the three error types i would be most concerned about is wrong address, misspelled name and wrong name because they could lead to lower credit scores.

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Human Resources and many other departments at Walmart will use the following as a form of business communication

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Human Resources as well as many other departments at Walmart usually use Accounting as a form of business communication.

Human resources  can be regarded as division of a business which carry out some functions such as;

 finding and screening of employees. recruitment of employees.training job applicants.administering employee-benefit programs.

This department overseas the employees affairs as well as their behavior.

Therefore, they use accounting as means of communication.

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