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rodikova [14]
3 years ago
13

The following information for the past year for the Blaine Corporation has been provided:Fixed costs:Manufacturing$ 125, 000$125

,000Marketing24,00024,000Administrative20,00020,000Variable costs: Manufacturing $ 110,000$110,000 Marketing 30,00030,000 Administrative 34,00034,000 During the year, the company produced and sold 60,00060,000 units of product at a selling price of $ 12.40$12.40 per unit. There was no beginning inventory of the product at the beginning of the year.What is the contribution margin ratio for Blaine Corporation (round to 1 decimal)?A. 70.470.4 %B. 53.953.9 %C. 22.722.7 %D. 76.676.6 %
Business
1 answer:
natima [27]3 years ago
5 0

Answer:

D. 76.6 %

Explanation:

Contribution Margin Ratio = Contribution / Sales × 100

<em>First Calculate the Contribution</em>

Contribution = Sales - Variable Costs

                     = (60,000 units × $ 12.40) -  ($110,000+$30,000+$34,000)

                     = $744,000 - $174,000

                     = $570,000

<em>Then Calculate Contribution Margin Ratio</em>

Contribution Margin Ratio = $570,000 / $744,000 × 100

                                           = 76.61290

                                           = 76.6 % ( 1 decimal)

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A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una
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Answer: $5,440

Explanation:

When using the percent of sales method to determine bad debts, the company estimates a percentage that it believes will results in uncollectible debt and then applies it to the sales/revenue figure. The figure that is calculated is then debited along with the debit balance on the Allowance for doubtful accounts to the Bad debts account for the year and credited to the Allowance for doubtful accounts.

This company estimates that they will have 0.6% of credit sales uncollectible.

There are also $790,000 in sales of which all are on credit.

The Uncollectible estimate is therefore,

= 790,000 * 0.6%

= $4,740

This figure is then added to the debit amount on the Allowance for Uncollectible Accounts.

= 4,470 + 700

= $5,440

Note; A debit balance on the Allowance for doubtful debt account signifies that the bad debts were higher than anticipated the last time. This is why the figure is added to the current bad debts expense.

6 0
3 years ago
Sasha, a production manager at ZestCorp Inc., must predict future labor demand using information about inventory levels from the
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Answer:

Trend Analysis

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3 years ago
Most informational reports are written a. by only top business executives. b. using the indirect organizational strategy. c. for
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<h2>using formal writing style</h2>

Explanation:

Informational reports are written for the purpose of internal audience.

A formal writing style consists of the following:

  • It will be written using active voice
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  • Sentences will be crisp and clear. No too lengthy sentences are allowed
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3 years ago
In 2016, Sarah (who files as single) had silverware worth $10,000 (basis $6,000) stolen from her home. Sarah's insurance company
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Answer:

C) None of the $5,000 should be included in gross income.

Explanation:

During 2016, Sarah's itemized deductions (other than the stolen silverware) were only $2,000. If Sarah wanted to deduct the stolen silverware, she could have taken a casualty loss = $6,000 - $100 - $3,000 = $2,900. Her total itemized deductions would equal $2,000 + $2,900 = $4,900.

But during that year, Sarah should have opted for a standard deduction of $6,300 which is higher than her itemized deductions. That means that Sarah didn't claim any deduction for her silverware, so any money received from the insurance company should not be included in her gross income.

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3 years ago
Setting prices for products and services requires entrepreneurs to balance a multitude of complex forces as entrepreneurs determ
Kobotan [32]

Answer:

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A <u>profit</u> is the amount earned from selling a commodity minus the amount expended to purchase, operate, or produce the commodity.

The primary aim of an entrepreneur is to make a profit, and price setting is one of the important activities that influences a profit. Since the higher the price, the higher may be the profit. However, a higher price may also dicourage customers from buying a product and then reduces profit.

Therefore, setting prices for products and services requires entrepreneurs to balance a multitude of complex forces as entrepreneurs determine prices for their goods and services that will draw customers and <u>produce a profit</u>.

3 0
3 years ago
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