Answer: A) is the increase in total cost resulting from producing one more unit.
Explanation:
Marginal cost is the increase in total cost that a company incurs from producing one more unit of the good being produced. It includes both fixed and variable cost and can be calculated by dividing the change in cost by the change in quantity.
Marginal cost is an important metric in profit maximisation because it tells the point where profit is maximised when it equals Marginal revenue.
The Allowance for Doubtful Accounts T-account will have the write-offs of specific customers sales discounts and allowances on the credit side.
<h3>What is
Doubtful Accounts?</h3>
It lowers the value of an asset—in this case, the accounts receivable—the allowance for dubious accounts is referred to as a "contra asset."
The allowance, also known as a bad debt reserve, is management's projection of the amount of accounts receivable that customers will not pay.
Thus, option B is correct.
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Answer:
$1,400
Explanation:
The computation of the amount of revenue recognized for the first month is shown below:
= Contract paid amount × number of months + additional amount paid × given percentage + additional amount paid × given percentage
= $1,000 × 6 months + $2,000 × 60% + $3,000 × 40%
= $6,000 + $1,200 + $1,200
= $8,400
Now for one month it is
= $8,400 ÷ 6 months
= $1,400
<span>Part of the lands' end business model includes purchasing products and then selling them again without any reprocessing. Lands' end is operating in the reseller market.
This company doesn't use the goods it has bought - it just sells it again to another company so as to get some profit.
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