Answer: Cash in advance
Explanation: Cash in advance is a type of payment that is used in some trade agreements.
This method of payment will require a buyer to pay the seller in cash before a shipment is received and sometimes before a shipment is even made.
Cash in advance is a strategic form of payment that can be used in any transaction in where there is a delay between the sales agreement and the sales delivery.
In the scenario given in the question, we can see that the German company has already placed an order, but the company has also caused a delay in the transaction by requesting for extra modifications.
This will prompt EastSide Tractors to feel the need to safeguard their interests in case the German company should default. This is why a Cash in advance payment system will come into play.
Answer:
187,500 units.
Explanation:
Fixed cost= $750,000
Variable cost= $2
Price= $6
To calculate the break-even quantity, we use the formula
Break even= Fixed cost ÷ (Price - Variable cost)
Let's input the values of each
$750,000/($6 - $2)
= $750, 000/ $4
= 187,500 units.
Therefore the break even is 187,500 units.
Answer: $324,000
Explanation:
Cedar Corp. paid $432,000 for a year in advance. According to the Accrual principle in Accounting, expenses are to be recorded only when incurred.
The rent will therefore have to be apportioned to the months that it has paid for in the current period.
Rent for year = $432,000
Rent for month = 432,000/12 = $36,000
April - December = 9 months
Rent for the year = 9 * 36,000
= $324,000
Note; <em>Question is about Rent expense which is how much Cedar Corp has paid not about how much they have received. </em>
I would need to see the chart but if BigBox has more, it would be they are the dominant, and same for CheapStore. basically, whoever has more revenue (money production) will have the dominant strategy.
Answer:
The amount received in cash is $686
Explanation:
The amount which is received in cash is computed as:
On June 20, the amount of $300 goods returns from customer, so the remaining balance is
= $1,000 - $300
= $700
On the remaining balance, the discount which is evaluated as the payment is received within the discount period which is June 24. So,
= $700 x (100% - 2%)
= $ 700 x 98%
= $ 686
