Sales: $914,000
Variable Costs: $498,130
Operating Income: $196,000
Contribution Margin Ratio = ?
Formula:
Contribution Margin Ratio = (Sales – Variable Costs) / Sales
Solution:
Contribution Margin Ratio = ( $914,000 - $498,130) /
$914,000
Contribution Margin Ratio = 45.5% (Answer)
Answer:
C. $9.50 per direct labor-hour
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
where,
Total estimated manufacturing overhead equals to
= Total fixed manufacturing overhead cost + Direct labor hours × variable manufacturing overhead per direct labor-hour
= $497,000 + 70,000 × $2.40
= $497,000 + $168,000
= $665,000
And, the direct labor-hours is 70,000
So the rate is equal to
= $665,000 ÷ 70,000
= $9.5 per direct labor-hour
The answer is A. Early payment
In Cash discounts, buyers will have the incentive to reduce the amount owed to the seller if they pay their liability faster than the Deadline
For example, the sellers can offer a 2 % discounts if the buyers make a payment within 10 days, while the actual deadline is 30 days
Answer:
The correct answer is the option C: an agreement among firms to charge the same price or otherwise not to compete.
Explanation:
To begin with, the name of <em>"collusion" </em>refers to an economy concept that focus on the situation where two or more companies decide to work together ilegally by taking a same strategy such as pricing the goods with a same amount so in that order the limit or at least intent to restrict the competion so in that way those firms can keep a piece of the market for themselves. It is consider ilegally in the countries because it is an disadvantage for the competition.
Answer: The net realizable value is the maximum value that can be achieved with the sale of the asset, discounting the costs associated with it.
The net realizable value (NRV) of accounts receivable would be:
NRV = Accounts Receivable - Allowance for Uncollectible Accounts
NRV = $ 62,500 - $ 6,200
NRV = $ 56,300
