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gulaghasi [49]
3 years ago
9

A new business has total net sales of $5,000 and the cost of goods sold is $3000. What is the total gross margin from sales?

Business
1 answer:
irakobra [83]3 years ago
8 0

Gross margin from sales equals net sales minus cost of goods sold.

In this case 5000 - 3000 = 2000

Gross margin is how much money from sales will be added to overall profitability to pay other expenses, basically how much above the cost of selling the goods do we make at the sales price we are charging.

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2 years ago
Ruby wants to start her own business taking photographs. She already has her own camera, but needs to purchase lights, a photo p
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Answer:

$432.97

Explanation:

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6 0
2 years ago
To guide cost allocation decisions, the ability to bear criterion ________.
hoa [83]

Answer:

the answer is D

Explanation:

Disagree. Cost accounting data plays a key role in many management planning and control decisions.  The division president will be able to make better operating and strategy decisions by being involved in key decisions about cost pools and cost allocation bases. Such an understanding, for example, can help the division president evaluate the profitability of different customers The salary of a plant security guard would be a direct cost when the cost object is the security department of the plant.  It would be an indirect cost when the cost object is a product. Exhibit 14-1 outlines four purposes for allocating costs:

1.   To provide information for economic decisions.

2.   To motivate managers and employees.

3.   To justify costs or compute reimbursement.

4.   To measure income and assets for reporting to external parties.

Exhibit 14-2 lists four criteria used to guide cost allocation decisions:

1.   Cause and effect.

2.   Benefits received.

3.   Fairness or equity.

Ability to bear. The cause-and-effect criterion and the benefits-received criterion are the dominant criteria when the purpose of the allocation is related to the economic decision purpose or the motivation purpose. Using the levels approach introduced in Chapter 7, the salesvolume variance is a Level 2 variance. By sequencing through Level 3 (salesmix and salesquantity variances) and then Level 4 (marketsize and marketshare variances), managers can gain insight into the causes of a specific sales-volume variance caused by changes in the mix and quantity of the products sold as well as changes in market size and market share. The total salesmix variance arises from differences in the budgeted contribution margin of the actual and budgeted sales mix. The composite unit concept enables the effect of individual product changes to be summarized in a single intuitive number by using weights based on the mix of individual units in the actual and budgeted mix of products sold. A favorable salesquantity variance arises because the actual units of all products sold exceed the budgeted units of all products sold. The salesquantity variance can be decomposed into (a) a marketsize variance (because the actual total market size in units is different from the budgeted market size in units), and (b) a market share variance (because the actual market share of a company is different from the budgeted market share of a company). Both variances use the budgeted average contribution margin per unit.

8 0
2 years ago
Of the following, which does NOT represent an example of a traditional workplace document?
stira [4]
A . an  evite which is more for social advents and not work .
4 0
2 years ago
Suppose a basket of goods and services has been selected to calculate the consumer price index. In 2005, the basket of goods cos
scZoUnD [109]

Answer:

Correct option is C.

If the CPI is 156.25 in 2007, then 2005 is the base year.

Explanation:

The CPI js given by the formula:

Current year prices/base year prices x 100

Given the values in years 2005,2006 and 2007, of all the given options, option (c) if the CPI is 156.25 in 2007, then 2005 is the base year is corrrect. This is because calculating CPI for 2007 using the above formula and 2005 as base year gives us CPI as 156.25.

5 0
2 years ago
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