Answer: Yes. AudioCable should buy a new equipment
Explanation:
Audiocables Inc. without new equipment:
Selling price: $1.40
Variable cost: $0.50
Fixed cost: $14,000
Sales: 30000 units
Total cost = Fixed cost + Variable cost
= $14000 + ($0.50 × 30000)
= $14000 + $15000
= $29000
Revenue = Sales × Selling price
= 30000 × $1.40
= $42000
Profit = Revenue - Total Cost
= $42000 - $29000
= $13000
Audiocables Inc. with new equipment:
Selling price: $1.40
Variable cost: $0.60
Fixed cost: $14,000 + $6000 = $20000
Sales: 50000 units
Total cost = Fixed cost + Variable cost
= $20000 + ($0.60 × 50000)
= $20000 + $30000
= $50000
Revenue = Sales × Selling price
= 50000 × $1.40
= $70000
Profit = Revenue - Total Cost
= $70000 - $50000
= $20000
From the calculations made, AudioCable buy a new equipment as profit generated is more.
Answer:
Customer ID HANAR
Customer Name Hanari Carnes
Order ID 10981
Total Amount 15810.00
Explanation:
Companies focus on Customer retention policies for high valued customers. The companies do not want to upset their high valued clients and lose a great part of their sales from these customers. In this question all the high valued customers are sent gifts by the company who has shop for $10,000 or more from the company this year. From the given list we have sorted the high valued customers based on this criteria.
Answer:
There will be no effect on working capital upon write off as the entries required would be a credit to receivables and a debit to allowance account.
Explanation:
The allowance account is the account used to record receivables due that may not be collectible.
When a company has determined that a receivable may be uncollectible, the company credits the allowance for receivables account and debits bad debit expense. This reduces the accounts receivable balance in the balance sheet as the receivables to be reported will be net the allowance given. As such, where on December 31, 2020, Allowance account balance includes $3,076 for a past due account that is not likely to be collected.
There will be no effect on working capital upon write off as the entries required would be a credit to receivables and a debit to allowance account.
Answer:
$13,290.89 and $15,734.26
Explanation:
In this question we have to use the Present value function which is shown on the attachment below:
In the first case
Provided that
Future value = $0
Rate of interest = 12% ÷ 12 months = 1%
NPER = 48 months
PMT = $350
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $13,290.89
In the second case
Provided that
Future value = $0
Rate of interest = 12% ÷ 12 months = 1%
NPER = 60 months
PMT = $350
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $15,734.26
Answer:
Balance = $1,650
Explanation:
As Norma company has paid 4 months rent in advance, therefore at the end of June, norma company will record its 1-month expense as follows
Adjusting entry at the end of June would be
DEBIT CREDIT
Entry
Rent Expense $550
Prepaid Rent $550
The balance on Norma's prepaid expense would be
Prepaid Rent = $2200
Rent Expense = ($550)
Balance = $1,650
