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kari74 [83]
3 years ago
7

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following i

nformation is available: Beginning inventory, January 1: $5,000 Net sales: $50,000 Net purchases: $51,000 The company's gross margin ratio is 15%. Using the gross profit method, the cost of goods sold would be:
$6,000. $26,500. $5,000. $31,500. $42,500.
Business
1 answer:
lukranit [14]3 years ago
6 0

Answer:

Using the gross profit method, the cost of goods sold would be:

$42,500

Explanation:

Gross margin ratio of the company is 15%. Refer the formula:

Gross margin = Gross profit/Revenue (or net sales)

= (Net sales- Cost of good sold)/Net sales

Using the gross profit method and from the formula,

Cost of good sold = Net sales - Net sales x Gross margin

= Net sales x (1 - Gross margin)

=  $50,000 x (1-0.15) = $50,000 x 0.85 = $42,500

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Qualified dividends may be subject to a marginal tax rate of 23.8 percent (20 percent for the capital gain and 3.8 percent tax o
djverab [1.8K]

Answer:

True

Explanation:

Qualified dividends are ordinary dividend that enjoy special tax privilege by being taxed at lower rate. The rate is based on specific tax rate which range from  0% to 20% depending on the income threshold. Though these dividends are taxed based on this specific lower tax rate compare to income tax rate, they are also subjected to net investment income of 3.8% if they earn above certain threshold.

However for dividends to be qualified, it must meet the two requirements given by the Internal Revenue Service (IRS). The requirements are:

*The dividend must have been paid by an entity incorporated in the United States or a qualifying foreign entity.

* The stock must have been held within the minimum holding period specified by the tax law.

So the answer is true because qualified dividends may be subject to a marginal tax rate of 23.8% for taxpayers with income over a certain threshold as explained above.

5 0
3 years ago
Shout Magazine focuses its marketing efforts on reaching teen-aged girls interested in fashion and celebrity culture. The firm b
Lelechka [254]

Considering the situation described above, Shout utilizes the strategy of <u>Concentrated Marketing.</u>

<u>Concentrated Marketing</u> is a type of Marketing strategy whereby firms or companies direct all endeavors and resources to develop and market a product for a particular target group segment.

Thus, when Shout Magazine focuses its marketing efforts on reaching teenaged girls interested in fashion and celebrity culture, this is a form of <u>Concentrated Marketing.</u>

Concentrated Marketing is often referred to as Niche Marketing, and it is considered more effective in small businesses.

Hence, in this case, it is concluded that the correct answer is "<u>Concentrated Marketing."</u>

Learn more here: brainly.com/question/15418516

4 0
3 years ago
A company has a unit contribution margin of $80 and a contribution margin ratio of 50%. what is the unit selling price?
lora16 [44]

If a company has a unit contribution margin of $80 and a contribution margin ratio of 50%. Then its unit selling price is $160 therefore option (d) is the correct answer.

Contribution margin, or dollar contribution in keeping with the unit, is the selling fee in step with the unit minus the variable price in line with the unit. "Contribution" represents the portion of sales that isn't eaten up by variable prices and so contributes to the coverage of fixed fees. The contribution margin is computed because of the promoting charge per unit, minus the variable value according to the unit. Additionally known as greenback contribution per unit, the measure indicates how a specific product contributes to the general income of the business enterprise.

To calculate the unit selling price use the formula

Unit selling price = contribution margin / contribution margin ratio

Unit selling price = $80 / 50%

Unit selling price = $160

Therefore option d) $160 is the correct answer

The contribution margin ratio of a business is the same as its revenue much less all variable fees, divided by means of its sales. It represents the marginal gain of producing one more unit.

Learn more about the Contribution margin here brainly.com/question/24881206

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3 0
1 year ago
Sportly, Inc. completed Job No. B14 during 2011. The job cost sheet listed the following: Direct materials $44,000 Direct labor
Damm [24]

Based on the direct materials, the direct labor, and the manufacturing overhead, the cost of finished goods on hand is $33,600.

<h3>What is the cost of finished goods on hand for this job?</h3><h3 />

Cost of goods on hand is:

= Cost of goods per unit x Number of goods on hand

Cost of goods per unit is:
= (44,000 + 24,000 + 16,000) / 3,000 units

= $28 per unit

Cost of goods on hand:

= 28 x (3,000 - 1,800)

= $33,600

Find out more on finished goods at brainly.com/question/26764271.

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3 0
2 years ago
When GE appointed Jeff Immelt--a white male and long-time GE executive--to succeed Jack Welch--also a white male--as their new C
geniusboy [140]

Answer:

Stability

Explanation:

When a company wants to make a transition in leadership there are various strategies being such change depending on business needs.

For example a company may want a strategic change, an ambiguous change, an innovative change, or a stable change.

In the given scenario GE appointed Jeff Immelt a white male and long-time GE executive to succeed Jack Welch also a white male as their new CEO.

There is no change in the profile of the new leader, and the fact that he is a long-time GE executive shows they want to maintain the same traditions as before.

So this is a stable strategy

3 0
3 years ago
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