Answer:
B. Accounts Receivable 960
Sales Revenue 960
Cost of Goods Sold 620
Inventory 620
Explanation:
Under perpetual inventory system the sale is recorded separately by sale value and the cost of the sold inventory is deducted from the inventory and added in the cost of goods sold.
Ne benefit of $340 (960-620) is automatically recorded and it will be measure at end of the period by formatting the income statement. It does not need to be recorded separately.
It should be noted that one of the reasons service failures need to be addressed quickly is to avoid negative word of mouth from upset customers.
According to the question, we are to discuss reasons service failures need to be addressed quickly and what the failure to do so can bring.
As a result of this we can see that doing this can avoid negative word of mouth from upset customers, which directly prevent the potential customer from not patronizing.
Therefore, avoiding negative word of mouth from upset customers serves as the reasons service failures need to be addressed quickly.
Learn more about service failures at;
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Answer:
The answer is $2,857.14
Explanation:
Let us assume Sales be $500 per month
Monthly
Sales $500
Less: Variable Cost(72%) $360
Contribution(will be 28%) $140
Less: Fixed Cost(Assume) 0
Operating Income $140
If there should be an increase of $800 per month in the operating Income
Revised Operating Income $140 + $800 = $940
Therefore Contribution is equal to $ 940
If Contribution is $940 equal to 28%, then Sales be 100%
$940 ÷ 28%
$3,357.14
Therefore additional increase in Sales revenue required per month
$3,357.14 - $500
$2,857.14