Answer: $6.2
Explanation: Contribution margin is the amount of revenue left after paying for the variable cost, it can be formulated as follows :-
contribution = sales - variable cost
In case of Limeade:-
sale price = $22.10
Variable cost = $15.90
so, putting the values into equation we get :-
contribution per foot = $22.10 - $15.9 = $6.2
Answer: The accounts receivable turnover is computed using the formula below: Net credit sales divided by Average accounts receivable
Explanation: The accounts receivable turnover ratio is a measure used to quantify a company's effectiveness in managing its receivables collections or amount owed by clients. The following steps are involved in calculating the accounts receivables turnover:
- Get the accounts receivable at the beginning and end of the desired periods and divide by 2 to get the average, which is the denominator in the formula above.
- Then get the net credit sales, which is the total sales revenue done on credit to customers, after backing out customers' returns
High accounts receivable turnover ratio means the company's collection process is highly effective while the low ratio signifies the opposite.
Residual income is named as such because it is the net income that you obtain. This includes all your total sales subtracted with bill payments, personal debts and other variable costs. Its formula is
Residual income = Net Operating Income - (Minimum Required Return * Average Operating Assets)
Substituting the values to the equation.
Residual Income = $100,000 - (0.15 × <span>$500,000)
Residual Income = $25,000
</span>The residual income gives the company an idea on its success and influences the company's decision to close or to expand. If the residual income is positive, then it means the company is earning more than its minimum. If the residual income is negative, then the company has a deficit.
Answer:
1. What was the issue price on January 1 of this year?
since the coupon rate was 6% and the market rate was the same, the bonds will be sold at par, so their issue price = $240,000
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
interest expense = coupon rate = $7,200 (for both June 30 and December 31)
3. What amount of cash is owed to investors on June 30 and December 31 of this year?
Face value = $240,000
4. What is the book value of the bonds on December 31 of this year, December 31 of next year?
Face value = $240,000
Answer:
$429.60 Favorable
Explanation:
Provided information,
Standard Hours for each product = 3 hours
Standard Cost per hour = $14.00
Actual hours used = 198
Actual output = 80 connectors
Standard hours for actual output = 80 
3 = 240 hours
Actual Rate = $14.80 per hour
Direct labor cost variance = Standard Cost - Actual Cost
Standard Cost = Standard hours Standard Rae
= 240 $14 = $3,360
Actual Cost = 198 $14.80 = $2,930.40
Variance = $3,360 - $2,930.40 = $429.60
Since actual cost is less than standard variance is favorable.
$429.60 Favorable
