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Delvig [45]
3 years ago
15

A company has the following account balances: Sales revenue $2,000,000: Sales Returns and Allowances $250,000: Sales Discounts $

50,000: and Cost of Goods Sold $1,275,000. How much is the gross profit rate?
Business
1 answer:
Naily [24]3 years ago
6 0

Answer:

0.25 or 25%

Explanation:

The computation of the gross profit rate is shown below:

Gross profit rate = Gross profit ÷ Net sales revenue

where,

Net sales revenue = Sales revenue - Sales Returns and Allowances - Sales Discounts

= $2,000,000 - $250,000 - $50,000

= $1,700,000

And, the Cost of goods sold is $1,275,000

So, the gross profit is

= $1,700,000 - $1,275,000

= $425,000

So, the gross profit rate is

= $425,000 ÷ $1,700,000

= 0.25 or 25%

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allochka39001 [22]
I’m not going to text him but I told my mom friend and I saw that her and she said she saw her coming home to get
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2 years ago
At the high level of activity in November, 12000 machine hours were run and power costs were $22000. In April, a month of low ac
NISA [10]

Answer:

The estimated fixed cost element of power costs is $10,000

Explanation:

For computing the fixed cost first we have to calculate the variable cost per unit which is shown below:

= (High power cost -  low power cost) ÷ (High machine hours - low machine hours)

= ($22,000 - $15,000) ÷ (12,000 - 5,000)

= $7,000 ÷ 7,000

= $1

Now the fixed cost would be

= (High power cost) - (high machine hours × variable cost per unit)

= $22,000 - 12,000 × $1

= $22,000 - $12,000

= $10,000

4 0
3 years ago
Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Schengen's management has cont
Julli [10]

Answer:

Volume variance    $1,320  Favorable

Explanation:

The fixed overhead volume variance is the difference between the actual and budgeted production unit multiplied by the standard fixed production overhead cost per unit.

Standard fixed overhead cost per unit = $11×6 =  116

                                                                                             Units

Budgeted     units                                                               375

Actual            units                                                              <u>395</u>

Volume variance                                                                  20

Standard fixed overhead cost                                        <u>× $66 </u>

Volume variance                                                              <u>  $1,320   Favorable</u>

                       

3 0
3 years ago
A company began its operations on April 1 of the current year. Budgeted sales for the first three months of business are $250,00
Mariana [72]

Answer:

Total cash collection May= $306,000

Explanation:

Giving the following information:

Sales:

April= $250,000

May= $320,000

June= $410,0000

The company expects to sell 50% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month of the sale, 40% in the month following the sale.

<u>Cash collection May:</u>

Sales on cash May= 320,000*0.5= 160,000

Sales on Account May= (160,000*0.6)= 96,000

Sales on Account April= (250,000*0.5)*0.4= 50,000

Total cash collection May= $306,000

8 0
2 years ago
Managers should be held responsible for only those cost, revenues, or assets over which they have substantial control.
lapo4ka [179]

Answer:

Managers should be held responsible for only those cost, revenues, or assets over which they have substantial control should be considered as a

FALSE Statement.

Explanation:

In order to understand this statement comprehensively, we need to know the following two views.

The Omnipotent View

The Symbolic View

The Omnipotent view

This view defines and makes managers wholly responsible for all the success and losses of an organisation. This view referred managers as completely liable for all the operations, causes and their resulting effects within an organisation. No matter what, they are held liable for the consequences. For example, when a football team performs, coaches and managers are held liable and they come under radar in case of bad performances.

The symbolic View

This view says that managers make decisions in the best interest of the firm on the base of available resources, assets, costs and revenues but there are certain things which are beyond their control, they have very less or little control over certain things like economy, political environment – rules and regulations, competitors actions, market conditions, having control over technology etc.

Consequently, mangers cannot be held completely responsible; they have limited impact and effect over the organisational performance.

7 0
3 years ago
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