Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin’s fixed costs are expected to be P 240,000. Kristin’s only other cost will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristin ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristin sells 40,000 picture frames in 1,000 shipments in 20X4, what is the kristin’s operating income for 20X4? a. P 300,000 b. P 420,000 c. P 240,000 d. P 450,000
Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin’s fixed costs are expected to be P 240,000. Kristin’s only other cost will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristin ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristin sells 40,000 picture frames in 1,000 shipments in 20X4, what is the kristin’s operating income for 20X4? a. P 300,000 b. P 420,000 c. P 240,000 d. P 450,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin’s fixed costs are expected to be P 240,000. Kristin’s only other cost will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristin ships an order of picture frames, regardless of the number of frames in the order.
Suppose Kristin sells 40,000 picture frames in 1,000 shipments in 20X4, what is the kristin’s operating income for 20X4?
a. P 300,000
b. P 420,000
c. P 240,000
d. P 450,000
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