To improve its standard of living, a nation’s economy must ____

An international children’s charity collects donations, which are used to buy clothing and toys for children in need. The charit

MatroZZZ [7]

Answer:

Required 1

General Journal

Cash $8,500 (debit)

Donations Revenue $8,500 (credit)

Cash and Checks received as Donation Revenue

Wages Expenses $3,000 (debit)

Cash $3,000 (credit)

Wages to employee paid

Note Payable $3,420 (debit)

Cash $3,420 (credit)

Repayment of Short Term Loan

Supplies $4,920 (debit)

Cash $2,080 (credit)

Note Payable $2,840 (credit)

Purchase of Toys on cash and on credit

Supplies $4,020 (debit)

Donations Revenue $4,020 (credit)

Donations revenue received in form of Toy Supplies

Required 2

Net Income is $9,520

Explanation:

Calculation of Charity’s preliminary net income.

Donations Revenue ($8,500 + $4,020) $12,520

Less Expenses :

Wages ($3,000)

Net Income/ (Loss) $9,520

7 0

3 years ago

Saint Petersburg Gambles - You are offered the following gamble based on coin flips. If the first heads occurs on the first flip

makkiz [27]

Answer:

The first reason why people are willing to pay so much less or lower than the expected value is due to the uncertainty of flipping a heads. Heads may never be flipped.

The Second reason they are willing to pay so much less or lower is because the expected value will rarely reach over $10 because player would have to make it to the 5th flip in order to recoup their investment in which most of the players are unwilling and ready to take that risk.

Explanation:

Saint Petersburg Gambles

The first reason why people are willing to pay so much less or lower than the expected value is due to the uncertainty of flipping a heads. Heads may never be flipped.

The Second reason they are willing to pay so much less or lower is because the expected value will rarely reach over $10 because player would have to make it to the 5th flip in order to recoup their investment in which most of the players are unwilling and ready to take that risk.

8 0

3 years ago

Sue sells authentic Amish quilts on her website. Suppose Sue expects to sell 3 comma 000 quilts during the coming year. Her aver

e-lub [12.9K]

Answer:

(A) 1,200 Margin of Safety_{units}

(B) 330,000 Margin of Safety_{usd}

(C) Margin of Safety 40% of Sales

Explanation:

(A)

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

275 - 150 = 125 CM per unit

$\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}$

$\frac{225,000}{125} = 1,800 = Break\: Even\: Point_{units}$

${units \: sold- BEP_{units} = margin \: of \: safety_{units}$

3,000 - 1,800 = 1,200 Margin of Safety_{units}

HOW? we Calculate the contribution per unit. Then the BEP in units and with that the margin of safety in units.

(B)

$\frac{Contribution Margin}{Sales Revenue} = $Contribution Margin Ratio$

125/275 = 0.45454545 = 5/11 CM ratio

$\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

225,000/(5/11) = 495,000 BEP USD

${current \:sales - BEP_{USD} = margin \: of \: safety$

825,000-495,000 = 330,000 Margin of Safety_{usd}

HOW? we Calculate the contribution ratio by dividing CM over sales. Then the BEP in dollars and with that the margin of safety in dollars.

Important: When posible to avoid rounding errors express as fraction iof posible

(C)

$\frac{current \:sales - BEP_{USD}}{current \:sales} \times 100 = margin \: of \: safety$

$\frac{330,000}{825,000} \times 100 = margin \: of \: safety$

Margin of Safety 40%

8 0

3 years ago

Silverwood Company is considering the following alternatives: Alternative A Alternative B Revenues $100,000 $200,000 Variable co

lana66690 [7]

Answer:

to find profit make

%profit =selling price + cost price ÷ cost price

5 0

3 years ago

Saturn Systems, an electronic goods manufacturer, sells its LED bulbs to Shockwave Enterprise, which in turn sells those bulbs t

AVprozaik [17]

Answer:

C. retailer

Explanation:

A retailer is a business entity that buys goods from manufacturers or wholesalers and sells them to the end-users. A retailer is, therefore, a middleman who helps customers acquire products from manufacturers.

There are several types of retailers classified according to their size and nature of business. Departmental stores are the largest retailers. They stock a wide range of products from electronics, jewelry, food items, furniture, clothing, to books, all under one roof. Other retailers include supermarkets, drugstores, restaurants, convenience stores, and discount stores.

Retailers make profits by buying goods at a wholesale or factory price and selling them at a higher retail price.

4 0

3 years ago

To improve its standard of living, a nation’s economy must _____.