Answer:
imma say true
Explanation:
Hilton's, a home-improvement store chain, reported these summarized figures:_______.
LOADING...(Click the icon to view the income statement.)LOADING...(Click the icon to view the balance sheets.)
a. Compute 's current ratio at December 31, 2017 and 2016.
b. Did 's current ratio improve, deteriorate, or hold steady during ?
a. Compute 's current ratio at December 31, 2017 and 2016. (Round your answers to two decimal places.)
First enter the formula, then compute the current ratio for each year.
_______ I _______ = Current ratio
Answer:
a. 2017 ⇒ 1.50
2016 ⇒1.58
b. Deteriorate
Explanation:
a. Current ratio 2017
= Current Assets / Current liabilities
= 6,708,700 / 4,470,000
= 1.50
Current ratio 2016
= 5,848,000 / 3,700,000
= 1.58
b. The current ratio went from 1.58 in 2016 to 1.50 in 2017 which would mean that it deteriorated.
You give your pajama-factory workers a $5 raise (per hour), and you also praise them generously for their hard work. They promptly produce 50 percent more pajamas. You assume this is due to the raise you gave them. Instead, you may be experiencing:________
a. McGregor's Theory Y.
b. the Hawthorne effect.
c. Maslow's survival needs.
d. Self-fulfilling prophecy.
Answer:
a. McGregor's Theory Y.
Explanation:
McGregor developed a a theory of motivation in the workplace.
Theory X is an authoritarian management battle where employees have little creativity and expect to be told what to do.
Theory Y is more participative. Employees take responsibility for their deliverables in an environment that encourages motivation.
Employee creativity is encouraged under theory Y.
In the given scenario the employees were praised generously. If this motivated them to produce 50% more Panama's, then we are experiencing McGregor's theory Y.
Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods, about 140 customers arrive per hour for service. Given the number of tables and chairs, and the typical time it takes to serve a customer, the owners estimate they can serve, on average, about 120 customers per hour.
Required:
During these nights, are they in the zone of service, the critical zone, or the zone of nonservice?
Answer:
During these nights, they are in the zone of non-service.
Explanation:
a) Data From Friday and Saturday nights:
Number of customers arriving per hour for service = 140
Estimated capacity for serving average number of customers = 120/h
b) Determination of service zones:
1) The "Zone of Service" occurs when service is below 70% of capacity, there is little or no wait time for customers, and customers will be happy.
2. The "Critical Zone" is when service is between 70-100% capacity. All their customers will be attended to without hassles, and customers will be satisfied.
3. The "Zone of Non-Service" occurs when the capacity of service is beyond 100%. Many customers will wait, some may not be attended to, and many others will not be happy nor satisfied.
Once expenses have been identified, they can be categorized as either fixed expenses or variable expenses.
For example, your mortgage would be considered a _______ expense, because ______. Conversely, grocery bills would be considered _____, because the actual amount is ______.
Answer:
Once expenses have been identified, they can be categorized as either fixed expenses or variable expenses.
For example, your mortgage would be considered a __fixed__ expense, because _the total amount does not vary_. Conversely, grocery bills would be considered _variable_, because the actual amount is _varies_.
Explanation:
Fixed expenses are fixed in total within a relevant range. The amount remains the same from one period to the next. The element of the fixed expense that changes is the cost per unit and not the total amount. On the other hand, variable expenses vary in total because of their quantities vary but their costs per unit remain fixed.
to make the most of your time you should break up large projects into small pieces true or false
true i think............
Geraldine is a self-employed consultant in St. Louis, Missouri. She traveled to San Francisco, California, in June and spent two weeks meeting with clients located in the area. She stayed an extra two days on vacation exploring the Bay Area. Which of the following is NOT a deductible business expense on Geraldine's return?
a. Airfare to and from San Francisco.
b. The cost of taking a taxi from her hotel to a client's place of business.
c. The meals and lodging for the extra two days.
d. Any of her meals or lodging, since she tacked on personal vacation days at the end of her trip.
Answer:
c. The meals and lodging for the extra two days.
Explanation:
All other expenses are directly related for the business purpose and there is no luxurious payment made. The extra two days stayed for vacation is the only non-business item, so only that portion of meal and loading expenses will not be treated as business expenses.
If Avon and Merck joined together to produce a cream that slows down the aging process, this would be called a(an)
I think you are asking what type of business this is. This is referred to as a "partnership". This is an ownership structure in which a single business is owned by two or more people. All individuals involved in a partnership are expected to contribute money, property, labor, or skill and share risks associated with operating a business. I hope this answers what you are looking for. :)
Is accounting conservatism appropriate
Answer:
Yes, accounting conservatism is appropriate because it makes firms more cautious when registering and reporting financial information. This increased cautiousness is likely to make accounting information more accurate.
Under the principle of accounting conservatism, losses are registered when they are found to be probable, while earnings are only added when they have been fully realized. As a result, this principle results in prudent and more trustworthy financial information for all stakeholders.
The following is a list of account balances for Pick-A-Pet, Inc., as of June 30, Year 3:
Accounts Payable $ 349,200
Accounts Receivable 419,200
Cash 732,600
Common Stock 662,100
Equipment 58,400
Logo and Trademarks 421,600
Long-term Notes Payable 268,900
Retained Earnings 470,100
Software 118,500
The company entered into the following transactions during July, Year 3. Stockholders contribute $300,000 cash for additional ownership shares and the company borrows $150,000 in cash from a bank to buy new equipment by signing a formal agreement to repay the loan in 2 years. No other transactions took place during July, Year 3.
Required:
a. Prepare a classified balance sheet for the company at June 30, Year 3.
b. Show the effects of the July transactions on the basic accounting equation.
c. Prepare the journal entries that would be used to record the transactions.
Answer:
Pick-A-Pet, Inc
a. Classified Balance Sheet as of June 30, Year 3:
Assets
Current Assets:
Cash $1,182,600
Accounts Receivable 419,200 $1,601,800
Equipment 58,400
Software 118,500
Logo & Trademarks 421,600 $598,500
Total assets $2,200,300
Liabilities and Equity:
Current Liabilities:
Accounts Payable $ 349,200
Long-term Liabilities:
Long-term Notes Payable $418,900
Total liabilities $768,100
Equity:
Common Stock 962,100
Retained Earnings 470,100 $1,4322,200
Total liabilities + equity $2,200,300
b. Effects of the July transactions on the basic accounting equation:
Assets = Liabilities + Equity
1. Stockholders contribute $300,000 cash for additional ownership shares
Assets (Cash + $300,000) = Liabilities + Equity (Common Stock + $300,000)
2. Company borrows $150,000 in cash from a bank to buy new equipment by signing a formal agreement to repay the loan in 2 years.
Assets (Cash + $150,000) = Liabilities (Long-term Notes Payable + $150,000) + Equity
c. Journal Entries to record the July transactions:
1. Debit Cash $300,000
Credit Common Stock $300,000
To record the additional capital contribution by stockholders.
2. Debit Cash $150,000
Credit Long-term Notes Payable $150,000
To record the borrowing of cash from a bank, repayable in 2 years.
Explanation:
a) Data and Calculations:
Accounts Payable $ 349,200
Accounts Receivable 419,200
Cash 732,600
Common Stock 662,100
Equipment 58,400
Logo and Trademarks 421,600
Long-term Notes Payable 268,900
Retained Earnings 470,100
Software 118,500
July Year 3 Transactions and Effects on accounts:
Cash 732,600
Common Stock 300,000
Notes Payable 150,000
Cash 1,182,600
Common Stock 662,100
Cash 300,000
Common Stock 962,100
Long-term Notes Payable 268,900
Cash 150,000
Long-term Notes Payable 418,900
Modified account balances:
Cash 1,182,600
Accounts Receivable 419,200
Equipment 58,400
Software 118,500
Logo and Trademarks 421,600
Accounts Payable $ 349,200
Long-term Notes Payable 418,900
Common Stock 962,100
Retained Earnings 470,100
Fatzinger Corporation has two production departments, Milling and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Milling Assembly
Machine-hours 20,000 14,000
Direct labor-hours 2,000 7,000
Total fixed manufacturing overhead cost $137,000 $57,400
Variable manufacturing overhead per machine-hour $ 2.30
Variable manufacturing overhead per direct labor-hour $3.40
The predetermined overhead rate for the Assembly Department is closest to:__________.
Answer: $11.60
Explanation:
Predetermined overhead rate = Fixed overhead rate + Variable manufacturing overhead per direct labor-hour
Assembly Department's predetermined overhead rate is based on direct labor-hours.
Fixed overhead rate = Total fixed manufacturing overhead cost for Assembly / Direct labor hours for Assembly
= 57,400 / 7,000
= $8.20 per labor hour
Predetermined overhead rate for Assembly = 8.20 + 3.40
= $11.60
Slapshot Company makes ice hockey sticks and sold 1,880 sticks during the month of June at a total cost of $433,000. Each stick sold at a price of $400. Slapshot also incurred two types of selling costs: commissions equal to 10% of the sales price, and other selling expense of $65,000. Administrative expense totaled $53,800.
Prepare an income statement for Slapshot for the month of June
Answer:
$125,000
Explanation:
Preparation of an income statement for Slapshot for the month of June
Sales revenue $752,000
(1,880 x $400)
Less Cost of goods sold ( $433,000)
Gross margin $319,000
($752,000-$433,000)
Less Selling expense ($65,000)
Less Commissions ($75,200)
($752,000 x 10%)
Less Administrative expense ($53,800)
Operating income $125,000
Therefore income statement for Slapshot for the month of June will be $125,000
Oak Interiors is owned and operated by Fred Biggs, an interior decorator. In the ledger of Oak Interiors, the first digit of the account number indicates its major account classification (1—assets, 2—liabilities, 3—owner’s equity, 4—revenues, 5—expenses). The second digit of the account number indicates the specific account within each of the preceding major account classifications.
Match each account number with its most likely account in the list that follows. The account numbers are 11, 12, 13, 21, 31, 32, 41, 51, 52, and 53.
Accounts Payable
Accounts Receivable
Cash
Fees Earned
Fred Biggs, Capital
Fred Biggs, Drawing
Land
Miscellaneous Expense
Supplies Expense
Wages Expense
Answer:
Oak Interiors
Matching each account number with its most likely account in the list:
12 - Cash
13 - Accounts Receivable
17 - Land
21 - Accounts Payable
31 - Fred Biggs, Capital
32 - Fred Biggs, Drawing
41 - Fees Earned
51 - Supplies Expense
52 - Wages Expense
53 - Miscellaneous Expense
Explanation:
a) Data and Classifications:
Digits and Accounts:
1—assets
12 - Cash
13 - Accounts Receivable
17 - Land
2—liabilities
21 - Accounts Payable
3—owner’s equity
31 - Fred Biggs, Capital
32 - Fred Biggs, Drawing
4—revenues
41 - Fees Earned
5—expenses
51 - Supplies Expense
52 - Wages Expense
53 - Miscellaneous Expense
b) The chart of accounts of Oak Interiors is where the financial accounting is organized into five major categories. These categories are called accounts. They include assets, liabilities, equity, revenue, and expenses. This implies that all business transactions that are recorded in accounts are summarized under any of these five major headings.
Consider the following data on U.S. GDP:
Year GDP
(Billions of current dollars) (Billions of 2012 dollars)
2014 17,521.7 16,899.8
2015 18,219.3 17,386.7
2016 18,707.2 17,659.2
2017 19,485.4 18,050.7
2018 20,494.1 18,566.4
The percentage change in nominal GDP from 2016 to 2017 was:_________
The percentage change in real GDP from 2014 to 2015 was__________
The percentage change in real GDP from 2014 to 2015 was higher than the percentage change in real GDP from 2015 to 2016.
a. True
b. False
Answer:
A. 4.16%
B. 2.88%
C. True
Explanation:
A. Calculation for The percentage change in nominal GDP from 2016 to 2017
Change in nominal GDP from 2016 to 2017
Change in nominal GDP= 19,485.4 / 18,707.2- 1
= 4.16%
B. Calculation for The percentage change in real GDP from 2014 to 2015
The percentage change in real GDP from 2014 to 2015
Percentage change in real GDP= 17,386.7 / 16,899 .8 - 1
Percentage change in real GDP= 0.0288 *100
Percentage change in real GDP= 2.88%
Calculation for percentage change in real GDP from 2015 to 2016 .
percentage change in real GDP= 17,659.2 / 17,386.7 - 1
percentage change in real GDP= 1.57%
TRUE The percentage change in real GDP from 2014 to 2015 which is 2.88% was higher than the percentage change in real GDP from 2015 to 2016 which is 1.57%
One of the problems unions are experiencing today is the reluctance of autoworkers in southeastern United States to join unions. In a few instances, when the Auto Workers Union (AUW) gathered enough employee signatures to call for a union certification election, the employees have voted against unionization. Who conducted this election?
A. union members from other automobile plants
B. a committee made up of union and employer representatives as well as federal election inspectors
c. union officials whose sole responsibility is to conduct elections
D. the National Labor Relations Board
E. the auto manufacturer
Answer:
D. the National Labor Relations Board
Explanation:
The National Labor Relations Board would be empowered by the national labor relations act who has the responsibility for holding the elections in which the labor would decide whether they want to join the union or as represented by one
Now for approaching to the board for an election purpose there is a requirement to represent the enough proof from the workers so here AUW have to gather the sufficient signature of the employee
Peach Company uses a weighted-average process-costing system. Company records disclosed that the firm completed 40,000 units during the month and had 10,000 units in process at month-end, 20% complete. Conversion costs associated with the beginning work-in-process inventory amounted to $231,000, and amounts that relate to the current month totaled $966,000. If conversion is incurred uniformly throughout manufacturing, Peach's equivalent-unit cost is:
Answer:
D. $28.50
Explanation:
for an organization
Hugo Munsterberg suggested that psychological tests could be helpful in
For an organization
Answer:
"Selecting employees" would be the right approach.
Explanation:
Although psychological testing could potentially allow the organization to generate leads as well as establish business-promoting advertisements, Munsterberg didn't investigate these possible outcomes. Conversely, he started to look at either the practitioners of someone using statistical models to attract and retain employees who've been highly probable to compete at a high level, attempting to producing "selecting employees" the appropriate approach.The Fitter Snacker company sold 6,435 cases of snack bars in June of the previous year.They are expecting sales to increase by 3% this year.In addition,they are launching a promotional campaign in May,which they expect will increase sales in June by an additional 500 cases.
-What is the sales forecast for June of this year that Fitter Snacker should use?
a. 6,628
b. 7,128
c. 6,935
d. 7,143
Answer:
a. 6,628
Explanation:
Sales forecast for current year June month = 6,435 cases*(1+0.03) = 6,435 cases*1.03 = 6,628.05 cases
Total sales for June in current year = Sales forecast for June + increase in sales due to promotion = 6,628.05 cases + 500 cases = 7,128.05 cases
Gutierrez, which uses a process-costing system, adds all material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The information that follows relates to the period just ended: Units started and completed: 75,000 Units in ending work-in-process inventory: 15,000, 60% complete Which of the following choices correctly expresses the total equivalent units of production with respect to material and conversion cost? Material Conversion
A. 130,000 130,000
B. 139,540 139,540
C. 145,900 136,360
D. 145,900 139,540
E. 145,900 145,900
Answer:
Materials ⇒ 90,000 units Conversion ⇒ 84,000 unitsExplanation:
Materials
Material is added at the beginning of production which means that it is complete at period end.
Equivalent unit of production for Materials:
= Units started and completed + Units in ending WIP
= 75,000 + 15,000
= 90,000 units
Conversion
Ending WIP is only 60% complete conversion wise.
Equivalent unit is therefore:
= Units started and completed + Units in ending WIP
= 75,000 + (15,000 * 60%)
= 84,000 units
What would sell more (both stores are just now opening.): a "in-trend" jewelry store or a Simplistic lip gloss shop?
Answer:
The lip gloss shop
Explanation:
Because a trend last for a short amount of time meaning you have to restock on so many new products all the time wasting more and more money, as to the lip glosses all colors can be sold or always be in style.
Case
Demand/supply
To the right/left
More /less (Q)
Income decrease
1
2
3
Price of raw materials decrease
4
5
6
Price of competitors decrease
7
8
9
Fill in the blanks with the correct behavior of the demand/supply curves
Type in the number relevant to it's location when answering,
ex: 1= when income decreases, supply will... and demand will...
8= When competitors price decrease, the curve will shift to the ....
Answer:
Je ne sais pas
Explanation:
Which of the following is something you should NOT do during negotiations?
a. Identify and prioritize discussion items and concerns.
b. Listen attentively while others contribute to the discussion.
c. Reveal specific findings or numbers to the contractor.
d. Probe and question until satisfied with the result.
Answer:
c. Reveal specific findings or numbers to the contractor.
Explanation:
The following things should do:
a. The identification and the discussion items should be prioritized
b. Listen attentively and on the other hand, the other contributes to the discussion
c. The probe and question till satisfied with the result
But for disclosing the particular finding to the contractor should not to be done
Therefore the option c is correct
Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.
Required:
For each of the following scenarios, determine the appropriate way to report the situation. Explain your reasoning and record any necessary entry.
a. The likelihood of a payment occurring is probable, and the estimated amount is $1.2 million.
b. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1 to $l.5 million.
c. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.2 million.
d. The likelihood of a payment occurring is remote, while the estimated potential amount is.$1.2 million.
Answer:
A Contingent liability is recorded in the books if the loss is probable and the amount can be estimated.
a. The loss is probable and the amount can be estimated:
DR Loss $1,200,000
CR Contingent Liability $1,200,000
b. Loss is probable and the amount is estimated in a range. Take the lower limit of the range:
DR Loss $1,000,000
CR Contingent Liability $1,000,000
c. Loss is not probable but rather reasonably possible. Contingent liability is not recorded but disclosed in full in the footnotes.
d. Loss is remote. Do not record in books and Disclosure is not required.
Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 95,000 and estimated factory overhead is $617,500. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished.
Businesses can be classified into the following forms: sole proprietorship, partnership, corporation, limited liability company (LLC), and limited liability partnership (LLP). Different forms of businesses have different characteristics. Which of the following characteristics would apply to a partnership?
a) Subject to unlimited personal liability
b) Income is allocated on a pro rata basis
c) Can easily raise large amounts of capital
d) Taxed at individual level
e) Chartered by a state and is its own legal entity separate and distinct from its owners and managers
f) Legal arrangement between two or more people
Answer:
b) Income is allocated on a pro rata basis
Explanation:
A partnership is an agreement between two or more people to oversee a business and share in the profit and losses made by the business.
In a partnership when income comes in it is shared.on a pro rata basis.
This means income is given based on the level of ownership of the business.
For example a partner that has 60% ownership of the partnership is expected to collect 60% of the business income.
Pro rata is also called proportional rate.
kosher Pickle Company acquires all the outstanding stock of Midwest Produce for $19.5 million. The fair value of Midwest's assets is $14.6 million. The fair value of Midwest's liabilities is $2.6 million. Calculate the amount paid for goodwill. (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
Answer:
$7.5 million
Explanation:
Fair value of acquired asset = $14.6 million
Fair value of liabilities = $2.6 million
Fair value of net assets = $14.6 million - $2.6 million = $12 million
Purchase price = $19.5 million
Fair value of identifiable asset = $12 million
Amount paid for goodwill = Purchase price - Fair value of identifiable asset
Amount paid for goodwill = $19.5 million - $12 million
Amount paid for goodwill = $7.5 million
Explain one concept of entrepreneur?
Answer:
Entrepreneurship refers to the concept of developing and managing a business venture in order to gain profit by taking several risks in the corporate world.
Kara Williams is the new controller for Colors, a designer and manufacturer of sportswear. Shortly before the December 31 fiscal year-end, Lashea Lucas (the company president) asks Williams how things look for the year-end numbers. Lucas is not happy to learn that earnings growth may be below 10% for the first time in the company's five-year history. Lucas explains that financial analysts have again predicted a 12% earnings growth for the company and that she does not intend to disappoint them. She suggests that Williams talk to the assistant controller, who can explain how the previous controller dealt with this situation. The assistant controller suggests the following strategies:
a. Postpone planned advertising expenditures from December to January.
b. Do not record sales returns and allowances on the basis that they are individually immaterial.
c. Persuade retail customers to accelerate January orders to December.
d. Reduce the allowance for bad debts (and bad debts expense).
e. Colors ships finished goods to public warehouses across the country for temporary storage until it receives firm orders from customers. As Colors receives orders, it directs the warehouse to ship the goods to nearby customers. The assistant controller suggests recording goods sent to the public warehouses as sales.
Requirement
Which of these suggested strategies are inconsistent with IMA standards? What should Williams do if Lucas insists that she follow all of these suggestions?
Answer:
1. Suggestions that are inconsistent with IMA standards are:
a. Does not violate IMA standards.
b. Is inconsistent with IMA standards.
c. Does not violate IMA standards.
d. Is not clear whether it would violate IMA standards.
e. Is inconsistent with IMA standards.
2. This is what Kara Williams should do if Lucas insists that she follow all of the suggestions:
Kara Williams should resist the attempt to implement b and e and should gather more information about d. If Lucas ignores Williams, then Williams should consider if she wants to continue working for a company that engages in unethical behavior.
Explanation:
The Institute of Management Accountants (IMA) has ethical standards that should be followed by its members. These standards or principles include professional competence, integrity, credibility, and confidentiality. The most relevant principles, in this situation, are integrity and credibility. Integrity requires that members must not engage in activities that will expose the profession to public ridicule or unethical practices. Credibility requires fair and objective presentation and communication of financial information to stakeholders.
Brian loves opera and hates rock 'n' roll. Tim loves playing rock 'n' roll music at high volume. Unfortunately, they are next-door neighbors in an apartment building with paper-thin walls.
In this case, (Brian/Tim) imposes a (Positive/Negative) externality on his neighbor in the form of noise pollution.
What command-and-control policy might the landlord impose?
(a) A rule that music could not be played above a certain decibel level
(b) A rental subsidy for those tenants who do not own any musical devices
(c) A tax on rent for those tenants who own speakers
Suppose the landlord lets the tenants do whatever they want.
True or False: According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
(True)
(False)
Answer:
Tim imposes a Negative externality on his neighbor in the form of noise pollution.
The command-and-control policy might the landlord impose is : a) A rule that music could not be played above a certain decibel level
(True)According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
Explanation:
As given ,
Brian loves opera and hates rock 'n' roll. Tim loves playing rock 'n' roll music at high volume.
In this case, Tim imposes a Negative externality on his neighbor in the form of noise pollution.
Because Tim's rock 'n' roll music disturb Brian and it effects negatively because due to Tim's music , Brian is unable to listen opera properly
Now,
The command-and-control policy might the landlord impose is :
a) A rule that music could not be played above a certain decibel level
Now,
If the landlord lets the tenants do whatever they want.
According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
It is True
Because if transaction cost is low , then Tim can pay compensation to Brian for high volume of music . But if transaction cost is high then they can not do any negotiation.
Technician A says wheel runout is usually measured with a dial indicator measuring in .001. Technician B says runout can occur only in the tire, not the wheel or axle. Who is correct?
Answer:
Neither Technician A or B are correct
Explanation:
Wheel runout is a term that involves a vehicle tire that's not perfectly round again. Thus, this will mean that the balance of the tires will be thrown off.
In this wheel runout, it can't be measure with a dial indicator and neither can it occur only in the tire..
The following information pertains to the Lurkins Company:
Sales price per unit = $300;
Variable cost per unit = $220;
Total fixed costs = $500,000;
Net income = $100,000.
What were unit sales for the company?
Answer: 7500
Explanation:
Let x be the number of units sales for the company.
Total sales = 300x [ Sales price per unit x number of units]
total variable cost = 220x [ Variable cost per unit x number of units]
Total sales - Total variable cost - Total fixed cost = Net income
[tex]\Rightarrow\ 300x-220x-500000=100000\\\\\Rightarrow\ 80x= 600000\\\\\Rightarrow\ x=\dfrac{600000}{80}\\\\\Rightarrow\ x=7500[/tex]
Hence, 7500 units sales for the company.
