Answer:
It is safer to invest in an IRA account. If she withdraws she will be penalized a large sum.
Explanation:
Answer:
What are the pricing strategies followed by competitor firms in Asia?
Explanation:
In simple words, any corporate entity willing to expand its business to a new market should first evaluate the existing business players. By doing so, the subject entity can get a significant level of understanding of the threats and opportunities available in the market.
Thus, ABC managers should first evaluate the strategies used by the existing participants of the market as after that they can make their plan to how attract other's customers towards ABC.
Given: Variable Cost Fixed Cost
per haircut per month
base salary 9660
manager bonus 530
commission 5.92
advertising 270
rent 940
barber supplies 0.30
utilities 0.25 180
magazines 25
Total 6.47 11605
Revenue 11.47
Break even point in unit = Fixed expenses per month / Contribution margin per month.
Break even point in unit = 11,605 / (11.47-6.47) = 11,605 / 5 = 2,321 haircuts
Break even point in $ = Fixed expenses / Contribution margin ratio
Break even point in $ = 11,605 / (5/11.47) = 11,605 / 0.44 = 26,375
Net Income = (Contribution Margin * # of haircuts) - Fixed expenses
Net Income = (5 * 2,380) - 11,605 = 11,900 - 11,605 = 295
A) Prepare the revenues section of the income statement.
Sales Revenue = $743,800
Sales Discounts = ($11,170)
Sales Returns and Allowances = <u>($22,820)</u>
Net Sales = $709,810
B) Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.
(1) Dr. Cr.
Revenue Expense $743,800
Income Summary $743,800
(2) Dr. Cr.
Income Summary $33,990
Sales Discounts $11,170
Sales Returns and Allowances $22,820