Black and Red, Inc
Not what you're looking for?
Black and Red, Inc. has prepared flexible budgets for two levels of sales. For sales of $1,000,000, net income is expected to be $250,000. For sales of $1,200,000, net income is expected to be $330,000. If fixed costs are expected to be $150,000, what percentage of sales are variable costs expected to be?
A) 75.0%
B) 72.5%
C) 60.0%
D) 50.0%.
Purchase this Solution
Solution Summary
The solution determines the variable cost.
Solution Preview
Sales = $1,000,000
Fixed Cost = $150,000
Net Income = ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
Recent Feedback
- "Your explanation to the answers were very helpful."
- "What does 1 and 0 means in the repair column?"
- "Went through all of the formulas, excellent work! This really helped me!"
- "try others as well please"
- "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Operations Management
This quiz tests a student's knowledge about Operations Management
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.