Answer and Explanation:
1
Expected cash flow for the project
Project A
sum (Probability*CF)
(6000*20%)+(6750*60%)+(7500*20%)
= 6750
project B
(20%*0)+(60%*6750)+(20%*18000)
= 7650
Based on the fixed costs of the Rocky Mountain Bottling Company, the contribution margin per unit is $0.40 per unit
<h3>How is the contribution margin found?</h3>
First, find the variable costs:
= 300,000 + (250,000 - 70,000)
= $480,000
The contribution margin per unit is:
= (Sales - variable costs) / number of units
= (800,000 - 480,000) / 800,000
= $0.40 per unit
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Answer:
c. Accrue revenue by making an adjusting entry at the end of the period
Explanation:
As in the given situation since it is mentioned that the service is earned but not yet billed or collected so here the revenue is accrued so that the revenue could be recorded by recording the adjusting entry and there is an account receivable at the closing of the period.
Therefore according to the given options, the option c is correct and the same is to be considered
