Answer:
Campus Stop, Inc.
Partial Income Statement
Sales revenue $323,300
Sales returns ($1,730)
Sales discounts and allowances <u> ($2,270)</u>
Net sales $319,300
Cost of goods sold <u>($172,870)</u>
Gross profit $146,430
Gross profit margin = $146,430 / $319,300 = 45.86%
Answer:
The cash collection on September 9 is records by the entry:
Debit Cash $5,300
Credit Accounts Receivable $5,300
Explanation:
Barnes Books allows for possible bad debts. On May 7, the company writes off a customer account. The journal entry:
Debit Allowance for Doubtful Accounts $5,300
Credit Accounts Receivable $5,300
On September 9, the customer unexpectedly pays the $5,300 balance. The journal entries:
1. Debit Accounts Receivable $5,300
Credit Allowance for Doubtful Accounts $5,300
2. Debit Cash $5,300
Credit Accounts Receivable $5,300
Answer:
The company was rated 5 stars more by Men
Explanation:
Given that
General population = 67/350
Men = 40/175
In checking the percentage ratio, we have
a. General population
= (67/350) × 100
= 19.14%
b. Men population
= (40/175) × 100
= 22.85%
Thus, seeing that 22.85% > 19.14%, therefore, company was rated 5 stars more among the men population.
Answer:
1. 120 hot dogs per day
2. $1,920
3. Inelastic
4.200
Explanation:
1. Break even is a term given to a situation where there is no profit or loss made by an organization for product sales.
Formula is;
Fixed cost /contribution per unit, where contribution per unit is selling price - variable price.
Solution.
Since Total fixed cost =$1,200, Selling price=$16, Variable costs=$6
=Fixed costs/(Selling price - Variable costs).
= $1,200/($16 - $6)
=$1,200/$10
=120 hot dogs.
2. Break even point in dollar sales volume. This refers to the number of products that would be produced and sold to cover production cost.
Formular is ;
Fixed cost/contribution per unit× Sales price per unit.
Solution
=Fixed costs/(Selling price - Variable costs)× Selling price.
=$1,200/($16 - $6)×$16
=$1,200/$10×$16
=$1,200×$16/$10
=$19,200/$10
=$1,920
3. The demand would be inelastic. Inelastic demand is when the demand of buyers does not change as much as changes in price.
4. Achieve level of sales target. This is when management wanted to know the sales level at which targeted profit will be achieved.
Formula
Fixed costs + Target profit/Contribution per unit
Solution.
=Fixed costs + Target profit/(Selling Price - Variable costs)
= $1,200 + $800/($16-$6)
=$1,200 + $800/($10)
=$2,000×/$10
=$200
=200 cases would needed to sell
