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Sindrei [870]
3 years ago
12

A customer calls and says that they are upset because they just received their bill and it is for two months service plus a $20

late fee. They have never had a late payment before. They explain that they moved last month and never received their bill. What would you tell them?
A. They need to pay the bill or their service will be discontinued.
B. You will get a supervisor to speak with them.
C. They just need to pay this months bill to be current.
D. You can waive the late fee this time if they pay the balance.
Business
1 answer:
scoundrel [369]3 years ago
3 0

Answer:

D. You can waive the late fee this time if they pay the balance

Explanation:

The customer's subscription was still active and that's why the bill for the two months were sent. Should he have informed the service provider that he would be moving soon or call them shortly after they moved, the provider would know and maybe discontinue the service. Companies usually have waiver option due to late fees. Therefore, instead of the company incurring loss for lack of due diligence on customer's part, they should consider waiving late fees for this customer to provide an incentive for him to pay the owed amount.

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Whoosh Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable ex
tiny-mole [99]

The number of cartons of calendars that Fast Spirit Calendars must sell each month to breakeven is 109500.

<h3>Breakeven</h3>

1. Number of cartons

Number of cartons=fixed expenses/contribution margin per carton

Number of cartons=1095000/(16.5-6.5)

Number of cartons=109500

2.  Target sales in dollars

Contribution margin ratio=contribution margin per carton/sales price per carton =

Contribution margin ratio=(16.5-6.5)/16.5

Contribution margin ratio=.61

Target sales in dollars=(fixed expenses + target operating income)/ contribution margin ratio

Target sales in dollars=(1095000+312000)/.61

Target sales in dollars=2,306,557

3. Contribution margin income statement

Sales revenue 7,507,500

(16.50x455,000)

Cost of goods sold 5,105,100

(6.50x455,000x68%)

Operating expenses 2,402,400

(6.50x455,000x32%)

Contribution margin  4,550,000

[(16.5-6.5)×455,000]

Fixed expenses 1095000

Operating income 3,455,000

(4,550,000-1,095,000)

4. Margin of safety​ (in dollars)

Sales revenue - sales revenue at breakeven = margin of safety ( in dollars) - ( sales price per carton x breakeven cartons) = margin safety in dollars

Margin safety in dollars=7,507,500-(16.5x109500)

Margin safety in dollars=7,507,500-1,806,750

Margin safety in dollars=5,700,750

Operating leverage factor =Contribution margin/operating income

Operating leverage factor =4,550,000/3,455,000

Operating leverage factor =1.316

Operating leverage factor =1.32 (Approximately)

5.  Operating income

Operating income increase=Sales volume x operating leverage factor

Operating income increase=11%x1.32

Operating income increase=.1452

New volume=Original volume + increase in volume

{[455,000+45,500 x(16.5-6.5)]-1095000}-3,455,000

=[500,500x10)-1095000]-3,455,000

=(5,005,000-1095000)-3,455,000

=3,910,000-3,455,000

=455,000

455,000/3,455,000

=0.132

Inconclusion the number of cartons of calendars that Fast Spirit Calendars must sell each month to breakeven is 109500.

Learn more about breakeven here:brainly.com/question/21137380

4 0
2 years ago
Which of following is a TRUE statement about inventory within a continuous review system?
garri49 [273]

Answer:

c. When ordering or setup costs increase, Economic Order Quantity increases

Explanation:

In inventory there are two types of review systems used to replenish stock, the periodic inventory and continuous inventory.

Continuous inventory involves ordering the same quantity of a good in each order. However the rate at which goods are replenished varies based on monitoring of level of goods. Orders are made when inventory gets to a certain level.

In this instance when there is an increase in ordering or setup there needs to be allocation of a higher amount for orders. The additional cost is added to the economic order quantity

5 0
3 years ago
Which of the following acquisitions would be considered the LEAST related? Group of answer choices A candy manufacturer purchase
kari74 [83]

Answer:

An upscale "white-tablecloth" restaurant chain acquires a travel agency.

Explanation:

Few reasons:

  • Such restaurant are luxurious, so they would want to collaborate with travel agencies but not acquire the whole agency itself.
  • Being the upscale restaurant they have to work on their own image not acquiring unnecessary agencies.
  • They have their own customer market, who won't compromise on the choices they make, so they don't need to acquire a travel agency to increase it's branding as not everyone can afford such restaurants.
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A wedding party hired a sole proprietorship to cater their wedding. In this situation, the sole proprietorship is a corporation
mario62 [17]
The answer would be false
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alculate the difference between the present value of $200 per year cash payments for the next 40 years and the present value of
Pani-rosa [81]

Answer:

Present value of annuity = PV(8%,40,-200,0,0)

Present value of annuity = $2,384.93

Present value of Perpetuity = 200/ 8%

Present value of Perpetuity = 200 / 0.08

Present value of Perpetuity = 2500

The difference between the Present value = $2,500 - $2,384.93 = $115.07

However, both does not equal as time value has to be considered.

8 0
3 years ago
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