Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. J&A Corporation has a monthly target operating income of $ 20 comma 300. Variable expenses are 30% of sales and monthly fixed expenses are

1. J&A Corporation has a monthly target operating income of $ 20 comma 300. Variable expenses are 30% of sales and monthly fixed expenses are $ 7 comma 700. What is the monthly margin of safety as a percentage of target sales in dollars?

A. 26.36%

B. 72.5%

C. 70%

D. 13.79%

2. Expected purchases for June and July are $ 73 comma 000$73,000 and $ 86 comma 000$86,000, respectively. Purchases for May were $ 56 comma 000$56,000. All purchases are paid

4040%in the month of purchase and 6060% the following month. At what amount are June payments for purchases budgeted?

A.

$ 66 comma 200$66,200

B.

$ 97 comma 200$97,200

C.

$ 62 comma 800$62,800

D.

$ 86 comma 000$86,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Police Auditing Standards And Applications

Authors: Allan Y. Jiao

2nd Edition

0398090750, 978-0398090753

More Books

Students also viewed these Accounting questions