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masha68 [24]
3 years ago
15

Sony introduces a new compact music player to compete with Apple's iPod that carries a two-year warranty against manufacturer's

defects. Based on industry experience with similar product introductions, warranty costs are expected to be approximately 3% of sales. By the end of the first year of selling the product, total sales are $30.7 million, and actual warranty expenditures are $270,000. What amount (if any) should Sony report as a liability at the end of the year
Business
1 answer:
iris [78.8K]3 years ago
3 0

Answer: $651,000

Explanation:

From the above question, Apple's iPod carries a two-year warranty against manufacturer's defects.

warranty costs are expected to be approximately 3% of sales.

Total sales are $30.7 million, and actual warranty expenditures are $270,000.

Total warranty cost = $30.7 million x 3% = $921,000

During the 1st year only $270,000 of warranty expenses was made.

Therefore the company will carry as liability at the end of the year a total of $921,000 - $270,000 = $651,000

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Explain the relationship between transaction motive and income
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Answer:That relationship suggests that money is a normal good: as income increases, people demand more money at each interest rate, and as income falls, they demand less.

Explanation:

7 0
3 years ago
Superior has provided the following information for its recent year of operation:
Anika [276]

Answer:

Option (a) is correct.

Explanation:

Given that,

Beginning balance of Retained Earnings = $75,000

Net income = $26,000

Ending retained earnings = $91,000

Total Balance during the year:

= Beginning balance of Retained Earnings + Net income

= $75,000 + $26,000

= $101,000

Dividend declared:

= Total Balance during the year - Ending retained earnings

= $101,000 - $91,000

= $10,000

Therefore, the amount of dividend declared by the Superior during its recent year of operation is $10,000.

3 0
3 years ago
Ahngram Corp. has 1,000 defective units of a product that cost $3.30 per unit in direct costs and $6.80 per unit in indirect cos
OLga [1]

Answer:

If the units are reworked, income will increase by $5,800.

Explanation:

Giving the following information:

Number of units= 1,000

Sell as-is= $4.3

Rework cost= $2.8

Selling price= $12.9

<u>Because the original cost will remain constant in both options, we will not take them into account.</u>

Sell as-is:

Effect on income= 1,000*4.3= $4,300

Rework:

Effect on income= 1,000*(12.9 - 2.8)

Effect on income= $10,100

If the units are reworked, income will increase by $5,800.

4 0
3 years ago
Last year, Ricardo sold a piece of unimproved real estate to Cliff for $20,000. Ricardo acquired the property 15 years ago at a
Afina-wow [57]
The correct answer is : 7000
4 0
3 years ago
A company manufacturing shirts for a discount department store decides to create a new style of cotton shirt. The company would
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A firm that makes shirts for a budget department store decides to develop a new cotton shirt type. The company would most likely make shirts that are less expensive to produce.

<h3>What is the name of the business?</h3>

A corporation is a legal body that represents a group of people with a common goal, whether natural, legal, or a combination of both. A company can be run by the single person or a group of person decided to operate the company.

There are options in this question that are-

  • sell at a high price
  • be less costly to create
  • use a nonrenewable resource
  • satisfy the wants and needs of consumers

Thus, option B is correct.

For further details about the name of the business, click here:

brainly.com/question/27870344

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8 0
3 years ago
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