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Maslowich
3 years ago
11

Zane Enterprises accepts a credit card as payment for $500 of services provided to a customer. The credit card company charges a

4% handling charge for its collection services. Based on this information
a. Zane will collect $500 cash from the credit card company.

b. Zane will pay the credit card company $500 cash.

c. Zane will collect $480 cash from the credit card company.

d. Zane will pay the credit card company $480 cash.
Business
2 answers:
Alex787 [66]3 years ago
7 0

Answer:

c. Zane will collect $480 cash from the credit card company.

Explanation:

The credit card company will deduct the collection services from the amount collected before transferring it to Zane enterprises thus Zane will receive the ammount:

500 x (1 - 4%) = 500 x 0.96 = 480

sveticcg [70]3 years ago
6 0

Answer:

c) Zane will collect $480 cash from the credit card company.

Explanation:

The charges that Zane has to pay to the credit card company is:

$500 x 4% = $20

--> Total amount that Zane will collect from the credit card company is: $500 - $20 = $480

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Answer:

$36,070

Explanation:

Given that,

Contribution margin ratio = 61%

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sales = $137,000

Contribution margin:

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= $83,570

Net income = Contribution margin - Fixed monthly expenses

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                    = $36,070

Therefore, the best estimate of the company's net operating income in a month is $36,070.

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kirill115 [55]
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Answer:

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4 0
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