Answer:
Dr. Account Payable $5,700
Cr. Discount Income $114
Cr. Cash $5,586
Explanation:
Term 2/10, net/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after purchase and net credit period of 30 days.
According to given data
Purchases = $5,700
As the payment is made within discount period, so discount will be availed
Discount = $5,700 x 2% = $114
Amount to be paid = $5,700 - $114 = $5,586
Answer:
The correct answer is option a.
Explanation:
The full-employment level of output is $2,000.
The current level of output is $1,900.
The current aggregate demand is $1,850.
There is a need to increase the aggregate demand by $150 to reach full employment level.
The government increases purchasing by $30.
1 - MPC =
MPC = 1 - 0.2
MPC = 0.8
Answer:
The contribution margin ratio is 35%
Explanation:
The formula for contribution is given below:
Contribution margin = revenue − variable costs.
Contribution margin ratio is given as:
(Sales – variable expenses) ÷ Sales
In this case,contribution is given as 1000*($20-$13), in other words selling price per unit minus variable cost multiplied by number of units sold.
Contribution is $7000
contribution margin ratio =$7000/($20*1000)
=0.35 or 35%
The implies that Hollis Industries makes a contribution of 35% per unit of output sold,hence, the contribution contributes towards covering fixed costs and making profit overall
Usually, it's over a monthly period.
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Answer: True
Explanation:
Strategic decisions do indeed take long-term commitment because they are meant to help the company in the long term not the short.
Strategic decisions usually set goals and achieve results in the long term. They are not expected to yield results in the short terms which is why MacDonald's pressed on with the all-day breakfast despite initial challenges.