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LenKa [72]
4 years ago
8

Safari Co. was organized to sell a single product that carries a 45-day warranty against defects. Engine 7% of the units sold wi

ll prove defective and require an average repair cost of $70 per unit. During Safari's first month of operations, total sales were 1,200 units; by the end of the month, six defective units had been repaired. ering estimates indicate that he liability for product warranties at month-end should be OA. $5,460. B. $6,300. O C. $420. O D. $5,880
Business
1 answer:
vovangra [49]4 years ago
6 0

Answer:

A. $5,460

Explanation:

Expected rate of defects = 7%

Average repair cost = $70

Total sales = 1,200 units

Actual defective units = 6

Liability for product warranties (L) at month-end should be the difference between the expected warranty costs (EW) and the actual warranty (AW) costs:

EW = 0.07*1,200*\$70 = \$5880\\AW = 6*\$70 =\$420\\L = \$5880 - \$420\\L= \$5460

Liability for product warranties at month-end should be $5,460.

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Financial statement data at December 31 for Ecco Company are as follows: Cost of goods sold $552,500 Inventories: Beginning of y
Marrrta [24]

Answer:

The answer is D.

Explanation:

Number of days' sales in inventory is the average number of days that a company will take to sell of its inventory within the year. It tells us the number of days funds are tied up in inventory.

The formula is (average inventory/cost of sales) x 365days.

Average inventory =

($200,000 + $140,000) ÷ 2

$170,000

Therefore, Number of days' sales in inventory is

($170,000/$552,500) x 365days

=112.3 days

7 0
3 years ago
Why have nonalcoholic drinks increased in popularity, and what difficulties do bar managers face when serving alcohol
Verizon [17]

Answer:

People consumes less of alcohol and more of non alcoholic drinks.

Explanation:

Now-a days people consumes less of alcoholic drinks as non alcoholic beverages or drinks are becoming non popular day by day. People have become more health conscience and wants to remain fit. Now wonder alcohol causes a lot harm to the human health. People now are aware of the side effects of consuming alcohol.

In the recent years the life style of the people have change a lot and they they have become health conscious than before. The consumption of other non alcoholic drinks have become familiar and famous including green tea, fruit juices, goji juice and many more.

The bar managers also face difficulty in serving alcohol to people as people refuse to drink them. They are more health conscience and is aware of the fatal incidents about drunk driving. They prefer other non beverages in the bar. As a result the sale of alcohol has decreased a lot. There are also various awareness programs running against consumption of alcohol.Thus people do not drink alcohol any more and so it is difficult for the bar managers to offer alcohol to their customers.

4 0
3 years ago
What does the phrase​ "internalizing an external​ cost" mean? A. prohibiting economic activities that create externalities B. fo
marin [14]

Answer:

B. forcing producers to factor into their production​ costs , the cost of the externalities created in the production of their output

Explanation:

" internalizing an external​ cost " -  

It is the process of shifting the cost or the burden from negative externality like the pollution , to inside .

And this process is achieved via paying taxes , the government subsidies , tolls etc .

Hence , the correct explanation for " internalizing an external​ cost " is ( b ) .

4 0
3 years ago
Coca-Cola, Inc. and PepsiCo, Inc. have only one distributor each in the Phoenix area. The Phoenix market is an intensely competi
yaroslaw [1]

Answer:

B. The denial is justifiable given the level of interbrand competition.

Explanation:

Anti trust law only applicable if you can proof that two or more producers in the same industry work together in order to assert their control over the market. They can do this through price fixing, controlling the amount of supply, etc.

This condition<em> can't be found</em> in the scenario above.

The denial that done by PepsiCo is justifiable because in a really competitive market, a company need to impose a strict requirement on which entities they should form a dealership relation with. If PepsiCo choose the wrong dealers, Its competitors could easily taken over the market and resulted in a huge amount of loss for the company.

7 0
4 years ago
What does a wholesaling company do?
nikdorinn [45]

Answer:

B. Sell products to companies that plan to resell them

Explanation:

like costco

3 0
3 years ago
Read 2 more answers
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