Answer:
Definition:
Contribution margin ratio is defined as, the difference between revenue and variable costs of the entity, expressed as percentage of sales.
Explanation:
Basically, the contribution margin ratio indicates that how much of sales amount is available to the entity to cover the fixed expenses incurred by the entity. It can be calculated using the following formula.
Formula= Contribution of the entity/ Sales Revenue of the entity.
If the contribution margin ratio of any entity is for example 50%, it will indicate that 50% of the sales amount is available to the entity tocover the fixed expenses which are to be incurred by it.
Answer: Price floor
Explanation:
A price floor is the legal minimum price control that is imposed by the government. It is binding when the equilibrium price is below the legal minimum price. At the price floor quantity supplied of a good is greater than its demand.Thus there is a surplus in the market at the price floor.
So, the lowest amount a manufacture can pay its factory workers is an example of a price floor.
Price ceiling is the maximum price that can be paid or charged for a good.
Answer:
The Journal entry is as follows:
Land A/c Dr. $400,850
To Cash A/c $100,850
To Notes payable $300,000
(To record purchase of land with cash and notes payable)
Workings:
Purchase price of land = $392,000
Total cost of land:
= Purchase price of land + Property taxes + Title insurance + Removal of building
= $392,000 + $2,100 + $950 + $5,800
= $400,850
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer: Judgment is a conscious act and involves reasoning. Intuition is the ability to acquire knowledge without inference or the use of reason. It's automatic without requiring thought. Think of how with experience to something, you can automatically react to a situation because your mind has internalised a response.
Explanation: