In class 2 ., The Model D is the Top/ favorite one having highest market return (24%) with lowest inventory cost ($79)
Explanation:
To Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. simply we should calculate the profit margin for each category
Profit margin = (market value - cost price) = Profit ÷ cost price × 100
Class 1:
Model A
46 $116 $139
Profit margin = (139 - 116) = 23 ÷ 116 × 100 = 19.32%
Model B
49 243 239
Profit margin = (239 - 243)= -4 ÷ 243 × 100 = - 1.65% (loss)
Model C
43 233 252
Profit margin = (252 - 233) = 19 ÷ 233 × 100 = 8.15%
Class 2:
Model D
37 79 98
Profit margin = (98 - 79) = 19 ÷ 79 × 100 = 24%
Model E
6 151 130
Profit margin = (130 - 151) = - 21 ÷ 79 × 100 = -13.91 % (loss)
Result
In class 1
Model A is preferable., It has the lowest inventory value and has highest market value (Returns) at 19.82%
In class 2
Model D is preferable., It has the lowest inventory value and has highest market value (Returns) at 24%
Overall the Model D is the Top/ favorite one having highest market return with lowest inventory cost
Answer:
You will spend about 57.57 gallons (57.568 to be exact)
Explanation:
Multiply $3.05 with 18.875 gallons to get the total
Answer:
Decrease by $80,000
Explanation:
The journal entries are shown below;
Retained earning Dr $80,000 (8,000 shares × $10)
To Common stock $40,000 (8,000 shares × $5)
To Paid in capital in excess of par $40,000 (8,000 shares × $5)
(Being the retained earning is recorded)
So by passing this journal entry we get to know that the retained earning will decreases by $80,000
Answer: c. step-variable cost
Explanation:
Step variable costs are variable costs in that they change in relation to the level of activity.
They are different from true variable costs however because they are only incurred at certain points. In other words, they are only incurred when the level of activity reaches a certain point.
In this case, the cost of the shirt is incurred depending on activity so it is a variable cost. It will however only be incurred at certain activity levels which fits the definition of a step-variable cost.
