Blane Company Has the Following Data What Will Operating Income Be If Units Sold Double to }

question 163

Essay

Blane Company has the following data: $\begin{array}{ll}\text { Total sales } & \$ 800,000 \\\text { Total variable costs } & \$ 300,000 \\\text { Fixed costs } & \$ 200,000 \\\text { Units sold } & 50,000 \text { units }\end{array}$ What will operating income be if units sold double to 100,000 units?

Understand the role and characteristics of angel investors and venture capitalists in financing small businesses.

Recognize the significance of a business's financial health and the importance of assets and collateral in securing loans.

Understand the implications of interest rates, loan terms, and the economic environment on financing decisions.

Know the criteria and considerations lenders and investors use when evaluating a small business for financing.

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Definitions:

Work In Process

A phase in manufacturing where items are partially completed but not yet ready for sale.

Job Cost Sheet

A form that records the direct materials, direct labor, and manufacturing overhead cost charged to a job.

Fire Insurance

A type of property insurance that covers damage and losses caused by fire.

Manufacturing Overhead

All indirect costs associated with manufacturing a product, including indirect labor, materials, and other expenses not directly tied to producing the product.