<u>Solution and Explanation:</u>
<u>Journal entry to record the purchase the bags of insultaion.</u>
Date Particulars Debit Credit
Inventory $6875
accounts payable $6875
(Purchased insulated bags from Glassco Inc., 1250bags at the rate $5.5 each)
<u>entry to record the payment for shipping</u>
Inventory $320
cash $320
( paid shipping charges for bags to warehouse)
<u>entry for return of the defective bags</u>
accounts payable $275
Inventory $275
( returned defective bags to glassco Inc)
<u>To record the payment for the bags kept by compass.</u>
Accounts payable $6600
cash $6600
( payment for remaining bags to Glassco Inc., )
B I think but hope I helped prob not tho
The option B is the correct answer.
Answer:
hedge fundfundfundfundfund
Explanation:
Answer:
Contribution per unit is $30 while contribution margin ratio is 40%
Explanation:
The contribution margin ration is derived with the below formula:
contribution margin ratio=margin/sales price
Margin=selling price-variable cost
Margin=$75-$45
Margin=$30
Contribution margin ratio=$30/$75
Contribution margin ration=40%
The contribution determines the to which the company can recover its fixed costs as well as make profits.
The contribution margin ratio shows margin as a percentage of sales price.A contribution margin ratio of 40% implies that variable cost is 60% of selling price,hence the balance of 40% is available to settle fixed costs and profit
