Multiple Choice Question 133 Swifty Corporation has fixed costs of $520000 and variable costs are 20%...

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business accounting

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Answer 1

Answer #1

Calaculation of sales to be reported by swifty corporation:

The correct option is

$712500

Explanation:

Given that,

Fixed costs = $520000

Variable costs = 20% of sales = 0.20×Sales

Net income = $50000

It was known that,

Net income = Sales - variable costs - fixed costs

=> Sales = Net income + variable costs + fixed costs

=> Sales = $50000 + (0.20×sales) + $520000

=> Sales - 0.20×Sales = $570000

=> Sales (1 - 0.20) = $570000

=> 0.80×Sales = $570000

=> Sales = $570000/0.80

Therefore,

Sales = $712500

______×_______

Let me know if you have any queries, All the best,

Kindly UPVOTE,

HAPPY CHEGGING.

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Answer 2

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Multiple Choice Question 133 Swifty Corporation has fixed costs of $520000 and variable costs are 20%...

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Add Answer to: Multiple Choice Question 133 Swifty Corporation has fixed costs of $520000 and variable costs are 20%...

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