(Answered) Avila promotions inc sells t-shirts decorated for a variety

Accounting

Avila Promotions, Inc. sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts:

Sales	$1,200,000
Cost of Goods Sold	720,000
Gross Profit	480,000
Operating Expenses ($180,000 is fixed)	316,000
Operating Income	164,000

Cost of goods sold and variable operating expenses vary directly with sales.

What would be the operating income if actual sales are 60,000 T-shirts?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92589808
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - at december 31 2016 grouper corporation reported

Question - At December 31, 2016, Grouper Corporation reported current assets of $384,870 and current liabilities of $206,100. The following items may have been recorded incorrectly. 1. Goods purchased costing $22,150 wer ...

Question access the answer the questions and submit to me

Question: Access the answer the questions and submit to me via Canvas. 1. What is a sole proprietorship and how is it taxed? 2. Define the term "limited liability". 3. List the advantages of an "S" corporation 4. Define ...

Question - the san bernardino county fair hires about 150

Question - The San Bernardino County Fair hires about 150 people during fair time. Their wages range from $6.75 to $8.00. California has a state income tax of 9%. Sandy Denny earns $8.00 per hour; George Barney earns $6. ...

Question each part should be supported with extensive text

Question: Each part should be supported with extensive text explaining and supporting the details of your plan. Part Two - List of financial goals (short, medium, and long-term) ? ?You should have a minimum of 3 for each ...

Question - discuss the construct of the time value of money

Question - Discuss the construct of the time value of money and how it relates to investing. A substantial initial response consisting of a minimum of 100 words, using proper grammar, spelling, and punctuation, as well a ...

Question competenciesbullevaluate the reasons business

Question: Competencies • Evaluate the reasons business combinations occur and the accounting implications of such transactions. • Critique the development of International Accounting Standards and the implications for US ...

Question - various financial ratios could be used to

Question - Various financial ratios could be used to analyse a company's financial performance and position. a) What ratios would you calculate to evaluate a company's profitability? Provide two examples of the ratios an ...

Questions -1 discuss the importance of accurate product

Questions - 1. Discuss the importance of accurate product costing. In your discussion you should highlight the problems associated with using traditional costing system which Beztec has been using. 2. Calculate the cost ...

Discussion your new client barbara has just formed a new

Discussion: Your new client, Barbara, has just formed a new corporation that provides consulting services to couples contemplating marriage. She has learned from her accountant that there will be items in her business th ...

Question - on june 30 2018 pharoah co sold equipment to an

Question - On June 30, 2018, Pharoah Co. sold equipment to an unaffiliated company for $1600000. The equipment had a book value of $880000 and a remaining useful life of 10 years. That same day, Pharoah leased back the e ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert