Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

andhill offers computer consulting, training, and repair services. For the most recent fiscal year, profit was $211,600, as follows: ConsultingTrainingRepairTotal Sales$568,200$508,300$344,000$1,420,500 Less variable costs: Salaries

andhill offers computer consulting, training, and repair services. For the most recent fiscal year, profit was $211,600, as follows:

ConsultingTrainingRepairTotal

Sales$568,200$508,300$344,000$1,420,500

Less variable costs:

Salaries 327,800 212,300 237,600 777,700

Supplies/parts26,30035,10073,500134,900

Other1,3002,9004,6008,800

Contribution margin$212,800 $258,000$ 28,300 499,100

Less common fixed costs:

Rent54,900

Owner's salary208,700

Utilities13,500O

ther10,400

Profit$211,600

Linda O'Flaherty, the owner of Sandhill, believes that in the coming year, she can increase sales by 13 percent. Assuming the current mix of services, what will be the percentage increase in profit associated with a 13 percent increase in sales?(Round weighted-average contribution margin ratio to 6 decimal places, e.g. 0.124547 and final answer to 2 decimal places, e.g. 15.25%.)

image text in transcribed
Sandhill offers computer consulting, training, and repair services. For the most recent fiscal year, profit was $211,600, as follows: Sales $568,200 $508,30 $344,000 $1,420,500 Less variable costs: Salaries 327,800 212,300 237,600 777,700 Supplies/parts 26,300 35,100 73,500 134,900 Other 1,300 2,900 4,600 8,800 Contribution margin $212,800 $258,000 $28,300 499,100 Less common xed costs: Rent 54,900 Owner's salary 208,700 Utilities 13,500 Other 10,400 Prot $211,600 Linda O'Flaher'ty, the owner of Sandhill, believes that in the coming year, she can increase sales by 13 percent. Assuming the current mix of services, what will be the percentage increase in profit associated with a 13 percent increase in sales? (Round weighted-average contribution margin ratio to 6 decimal places, e.g. 0.124547 and final answer to 2 decimal places, e.g. 15.25%.)

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

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

12th edition

1259918947, 1260091908, 978-1259918940

More Books

Students also viewed these Accounting questions

Question

What are the challenges associated with tunneling in urban areas?

Answered: 1 week ago

Question

What are the main differences between rigid and flexible pavements?

Answered: 1 week ago

Question

What is the purpose of a retaining wall, and how is it designed?

Answered: 1 week ago

Question

How do you determine the load-bearing capacity of a soil?

Answered: 1 week ago

Question

what is Edward Lemieux effect / Anomeric effect ?

Answered: 1 week ago

Question

npt in Progress If markets are not reasonably efficient, then

Answered: 1 week ago

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago