Determine how much should net income increase

Assignment Help Managerial Accounting
Reference no: EM132640104

Problem 1: Astair, Inc. reported sales of $8,000,000 for the month and incurred variable expenses totaling $5,600,000 and fixed expenses totaling $1,440,000. The company has no beginning or ending inventories. A total of 80,000 units were produced and sold last month. If sales increase by 200 units, how much should net income increase?

Option 1: $1,600

Option 2: $6,000

Option 3: $10,000

Option 4: $19,200

Reference no: EM132640104

Questions Cloud

Which sofa should sally purchase : Which sofa should Sally purchase? What costs are relevant in her decision? Why? Sally wants to purchase a new sofa because she purchased a new heme
What are the four critical management skills : Analyse complex problems relating to Management and Organisations and their impact on the business and Comprehend how businesses benefit
Find how might extrinsic incentives contributed to toyota : Toyota Motor Corporation with accelerator pedals sticking, How might have extrinsic incentives contributed to Toyota's decreased focus on quality?
How might strict adherence to the taylor rule discourage : How might strict adherence to the Taylor rule discourage demand-pull inflation? How might demand-pull inflation occur, nonetheless?
Determine how much should net income increase : A total of 80,000 units were produced and sold last month. If sales increase by 200 units, how much should net income increase?
What is the multiplier when the change in equilibrium level : What is the multiplier when the change in equilibrium level of real GDP in the aggregate expenditures model is 9, and change
Implications of continued government indebtedness : What are the long-term implications of continued government indebtedness?
What is meant by a learning curve : What is meant by a learning curve and explain it's role in cost estimation. Discuss the role of learning curve in accounting. Explain in detail
The economic lowdown podcast series : Listen to (or read the transcript of) this podcast (Federal Reserve Bank of St. Louis. (n.d.).

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Discuss the key items related to a successful balanced

Help the company by identifying three customer-focused measures that can be used on the balanced scorecard. Discuss the key items related to a successful balanced scorecard.

  What september direct manufacturing labor efficiency

What September's direct manufacturing labor efficiency variance is and September's direct manufacturing labor price variance is

  How the conceptual framework revision to include prudence

ACC302 ADVANCED ACCOUNTING T116. Topic: Making sense of company executives' compensation and employee benefits through the lens of cultural effects. How the conceptual framework revision to include Prudence is likely to address the disparity in Co..

  What is the entry to record purchases of raw materials

What is the entry to record purchases of raw materials on account? Activities that involve the purchase of merchandise and the sale of goods.

  Find How many items need to be counted each? day

Lindsay? Electronics, a small manufacturer of electronic research? equipment, has approximately, How many items need to be counted each ?day?

  Discuss some of the non-quantitative factors

Although this case differs from "fraud" in the usual sense, describe the conflict of interest in this case. Who benefitted, and who did not?

  What is the labor efficiency variance for the period

What is the labor efficiency variance (LEV) for the period? A standard budget shows that to produce 6,000 units, 24,000 labor hours are expected at an expected

  Prepare the consolidation worksheet entries for x ltds

ACCT20073 - Company Accounting-Central Queensland University-Australia- Prepare the consolidation worksheet entries for 'X' Ltd's group at 30 June 2019.

  Analyze the causes of non-compliance

Discuss the existing condition found by the internal auditor when they conducted the operational audit. Analyze the causes of non-compliance.

  How do estimate cost formula for manufacturing overhead

How estimate the cost formula for manufacturing overhead. Assume that both direct material and direct labor are variable costs.

  Distinguish between these different types of costs

Discuss the key differences between variable costs, fixed costs, and mixed costs and provide an example of each of these types of costs.

  What was the total amount of cash collected by going places

What was the total amount of cash collected by Going Places on the maturity of the note? (Round any intermediate calculations to two decimal places)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd