During march, adams company had sales of $5,000,000, variable expenses of $3,000,000, and fixed expenses of $1,500,000. assume that cost behavior and unit selling price remain unchanged during april. in order for the company to realize net operating income of $300,000 for april, sales would have to be: ans: a. $3,750,000. b. $4,050,000. c. $4,500,000. d. $4,800,000.

Option (c) is correct.

Explanation:

Variable cost as a percent of sales:  

= (Variable expenses ÷ Sales) × 100

= ($3,000,000 ÷ $5,000,000) × 100  

= 60%

If Sales = X

then Variable cost is 0.6X (i.e. 60% of Sales)

Sales - Variable cost - fixed expenses = net operating income

X - 0.6X - 1,500,000 = 300,000

0.4X = 300000 + 1500000 = 1800000

X = 1800000 ÷ 0.4

  = 4,500,000

answer: b) the us is the leading importer but not the leading exporter.

extra info:

the u.s is the largest importer but it is not the largest exporter as china sits on the top of the table when it comes to leading exporters.

but u.s is not far from first,

they rank in 2nd globally as the worlds largest exporter.

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