<u>This is an example of "outsourcing".</u>
Outsourcing is the business routine with regards to procuring a gathering outside an organization to perform benefits and make products that generally were performed in-house by the organization's own representatives and staff. Generally done as a cost-cutting measure, it can influence occupations going from client support to assembling to the back office.
Outsourcing can enable organizations to lessen work costs essentially by outsourcing certain assignments. Organizations can likewise dodge costs related with overhead, gear and innovation.
Answer:
195,000= fixed costs
Explanation:
Giving the following information:
Sales $400,000
Margin of safety $ 100,000
Contribution margin ratio of 65%
To calculate the fixed costs, we need to use the break-even point in dollars formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
300,000= fixed costs/ 0.65
195,000= fixed costs
Answer:
Date Account titles and Explanations Debit Credit
31 Dec Bad debts expense $5,000
Allowance for uncollectible accounts $5,000
(To record bad debts expense recorded)
5 Mar Allowance for uncollectible accounts $1,200
Accounts receivable $1,200
(To record account written off)
Using the payment formula,
rate = 6.25%/4 (since it is compounded quarterly)
PV = 10,438.88
n= 6*4= 24 (6 years * 4 quarters per year)
Payment amount would be $524.95
