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3 years ago

5

The selling price of a television is $1,000 and the cost to the retailer is $725. what is the retailer's gross profit from th

e sale of the television?

1 answer:

julia-pushkina [17]3 years ago

6 0

I didn't really understand what you meant but I think it's $275

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Turner Inc. produces two products P1 and P2. The company has provided you with the following information. Assume that the curren

Nesterboy [21]

Answer:

B. The operating leverage for Turner now is 0.47 ⇒ TRUE

operating leverage = fixed costs / total costs = $240,000 / $510,000 = 0.47

C. Turner makes a contribution of $0. 57 per dollar of revenue, on the average. ⇒ TRUE

total contribution margin = ($20 x 9,000) + ($30 x 6,000) = $180,000 + $180,000 = $360,000

total revenue = $630,000

contribution margin per $ of revenue = $360,000 / $630,000 = $0.57

D. Turner will break even when it reaches a revenue of $420,000. ⇒ TRUE

break even point in $ = (6,000 x $30) + (4,000 x $60) = $180,000 + $240,000 = $420,000

Explanation:

A. 40% of Turner's revenue comes from P2 ⇒ FALSE

total revenue = $270,000 + $360,000 = $630,000

revenue from P2 = $360,000, which represents 57.14% of total revenue

E. The breakeven volume for Turner is 9,334 units ⇒ FALSE

in order to calculate break even point, we can prepare a bundle of products = 3P1 + 2P2

contribution margin per bundle = $120

break even point = $240,000 / $120 = 2,000 bundles

6,000 P1 and 4,000 P2

7 0

2 years ago

Kilroy Corporation provides services to a customer for $1,000. The customer complained that there was a slight defect in the ser

nordsb [41]

Answer:

debit to Sales allowance of $50

Explanation:

When some defect in a product is revealed or notified by the buyer, the seller usually grants the customer an allowance which is termed as sales allowance.

It is usually allowed when the customer agrees to keep the product instead of returning the defective product which would constitute sales returns.

Following journal entry is recorded for recording sales allowance

Sales Allowance A/C Dr. $ 50

To Accounts Receivable $50

(Being allowance for defects recorded)

Sales allowance is deducted from gross sales before the customer makes payment.

8 0

3 years ago

Understanding the _____ begins with analysis of market share.

Nana76 [90]

<span>Understanding the trend begins with analysis of market share. Trend analysis plays an very important part in market share analysis. With the help of trend analysis, one can have the idea, if the market is going to be bullish or bearish.</span>

3 0

3 years ago

Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is: Question 20

irina [24]

Answer:

c. half of the order quantity

Explanation:

Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is <u>half of the order quantity</u>

Economic order quantity is a quantity which minimizes the ordering cost and holding cost

Q = EOQ = $\sqrt{2*D*S/ H}$ where D = Demand unit, S = Order cost and H = Holding cost

- Ordering cost and the Holding at EOQ will be same

- Average inventory = Q/2

- Average inventory is the half of the order quantity.

7 0

3 years ago

The current exchange rate between U.S. Dollar and Euro is $1.355/.738. It means that:______a. one Euro can buy 0.738 Dollars.b.

Verdich [7]

Answer:

b. one Dollar can buy 0.738 Euros

Explanation:

Given that

The Current Exchange rate is

= $1.335 ÷ 0.738 Euro

The 0.738 represents the indirect exchange rate now transform it into direct exchange rate

Direct Exchange rate is

= $1 ÷ 0.738 Euro

= $1.3550

Now bid price for purchase one euro is $1.335 and ask price to purchase one euro is $1.355

But the person could purchased at ask price only

Therefore the option b is correct

4 0

3 years ago