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4 years ago

Data for Hermann Corporation are shown below:

Business

1 answer:

timama [110]4 years ago

8 0

Answer:

1) Yes monthly advertising budget should be increased as it increases the sales by $ 9000 even then there would be profit of $ 4000

2) the net operating income will increase by (38,000-24,000) = $ 14,000

Explanation:

Given

Sales 2000 units for $ 90 = $ 180,000

Variable Expenses = $126,000

Contribution Margin = $ 54,000

Less Fixed Expenses = $ 30,000

Operating Income = $ 24,000

1) Yes monthly advertising budget should be increased as it increases the sales by $ 9000 even then there would be profit of $ 4000

2) the net operating income will increase by (38,000-24,000) = $ 14,000

Sales 2000 units for $ 99 = $ 198,000

Variable Expenses (63 +2= $65) = $130,000

Contribution Margin = $ 68,000

Less Fixed Expenses = $ 30,000

Operating income = $ 38,000

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The Miller Company earned $133,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivabl

horsena [70]

Answer:

The net realizable value of Miller's receivables at the end of Year 2 was: $42,010

Explanation:

Open a Trade Receivable Account as follows :

Debits :

Revenue $133,000

Totals $133,000

Credits:

Cash $87,000

Balance $46,000

Totals $133,000

Note that Allowance for Doubtful debts is estimated at 3% of the Company`s Sales on Account

Allowance for Doubtful debts = $133,000 × 3%

= $ 3, 990

<u>Net realizable value of Miller's receivables</u>

Trade Receivable Balance $46,000

Less Allowance for Doubtful Debts $3,990

Trade Receivables $42,010

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4 years ago

Give one example of how a decision that a consumer makes will involve an opportunity cost?

Tomtit [17]

Answer:

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3 years ago

Konan, Inc. needs to determine its inventory value. The following information pertains to the individual products in ending inve

cluponka [151]

Answer:

Explanation:

The computation is shown below:

As we know that

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= $ 60 - $10

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4 years ago

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chubhunter [2.5K]

Discounting

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Security A has a higher standard deviation of returns than security B. We would expect that: I. Security A would have a higher r

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Explanation:

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3 years ago