Answer:
The production range between 1120,000 and 150,000 is called Relevant range
correct option is c) relevant range
Explanation:
given data
normally produces = 120,000 to 150,000 units
to find out
The production range between 1120,000 and 150,000 is called
solution
The production range between 1120,000 and 150,000 is called Relevant range because there are 2 point
- if Craft, Inc. need to reduce fixed expenses then production volume is reduce less than 120000 unit
- if Craft, Inc. need to increase fixed expenses than production volume is increases more than 150000 unit
and if expected fixed expenses will not change than the production volume is 120000 units to 150000 units
so that production range between 1120,000 and 150,000 is called Relevant range
correct option is c) relevant range
Answer:
Debit Bad Debts Expense $12,475
Credit Allowance for Doubtful Accounts $12,475
Explanation:
Calculation for estimated bad debts expense:
Explanation
Accounts receivable * Sales uncollectible
$445,000×0.025
=11,125
Hence:
11,125 +Allowance for Doubtful Accounts 1,350
=$12,475
Therefore the estimated bad debt will be:
Debit Bad Debts Expense $12,475
Credit Allowance for Doubtful Accounts $12,475
A privilege
Good Luck! <span />
Answer:
The Answer is as follows;
Explanation:
Dividend on preferred stocks=$10*7.5%=$.075
Transaction Costs=$1
Total financing Cost=$1.75
Which is 17.5% (1.75/10)
The market price is not relevant for company's cost of financing. Therefore we have taken dividend payable on face value and transaction costs of issue for purpose of determination of financing cost.
Answer
The answer and procedures of the exercise are attached in image below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
