Answer:
E. $40,600
Explanation:
Calculation for the amount of net income reported on Sparty's income statement
Revenue $97,000
Less: Operating Expenses $39,000
Profit Before Tax $58,000
(97,000-39,000)
Less Taxes $17,400
Net Income $40,600
($58,000-$17,400)
Therefore the amount of net income reported on Sparty's income statement will be $40,600
D.) Whether to order a pepperoni or a cheese pizza is a decision that cannot be made at the margin.
Making decisions at a margin is merely considering an option on top of your made decision. Cost and Benefit is a factor in thinking in a margin.
You have already decided to move. Your marginal decision is whether to move to Boston from Chicago,
You have already decided to spend the day on Saturday. Your marginal decision is whether to watch a movie or go hiking.
You have already decided to have a two-week vacation. Your marginal decision is whether to spend it on the shore or in town.
You have decided to order a pizza. Any flavor of pizza will still make you spend money. So there is no marginal decision needed.
Answer:
Debit to sales discounts for $100
Explanation:
Please see journal entry to record the sales below;
a. Dr accounts receivable $5,00
To sales revenue account $5,000
(Being merchandise that is sold on credit basis)
Suppose payment is made within 10 days, the journal entry will be;
Dr Cash account $4,900
Sales discount account $100
(5,000 × 2%)
To accounts receivable $5,000
(Being cash that is received)
Answer:
D. The order quantity is constant, regardless of the demand.
Explanation:
Basic Continuous Review Model relates to inventory stock management, where each time an inventory unit is added in or moved out the stock level is calculated again.
It do not assume that the order quantity is constant as it calculates inventory level after each order, there is no basic assumption as such.
The review model keeps on moving the stock and tries to maintain such level as by ordering the quantity sold, and it keeps on rotating, but there is no standard set for order quantity.
Answer:
A. $2,325
B. $2,325
C. $0; $1,715
D. $598.5
Explanation:
A. Calculation to determine the amount of the travel costs can Melissa deduct as business expenses
Round trip airfare $610
Conference registration fees $385
3 nights lodging $1,005
($335*3)
Meals $150
(300*50%)
Cab fare $175
Total deduction $2,325
Therefore the amount of the travel costs can Melissa deduct as business expenses will be $2,325
b. Calculation to determine What amount of the travel costs can Melissa deduct as business expenses
Based on the information given the amount of the TRAVEL COSTS that Melissa can deduct as BUSINESS EXPENSES will still be $2,325.
Round trip airfare $610
Conference registration fees $385
3 nights lodging $1,005
($335*3)
Meals $150
(300*50%)
Cab fare $175
Total deduction $2,325
c. Calculation to determine What amount of the airfare can Melissa deduct as a business expense
Based on the information given Airfare will NOT BE DEDUCTIBLE
Hence;
Total Airfare deductible = $0
Total expenses deductible = $2,325 - $610
Total expenses deductible = $1,715
d. Calculation to determine the amount of the travel costs can Melissa deduct as business expense
Registration fee $385
Mileage $43.5
($75*0.58)
Parking $170
Total deductible $598.5
Therefore the amount of the travel costs that Melissa can deduct as business expense is $598.5
