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Masja [62]
3 years ago
7

Conceptual Connection: If Gilmore's estimate of bad debts is correct (2.2% of credit sales) and the gross margin is 20%, by how

much did Gilmore's income from operations increase assuming $150,000 of the sales would have been lost if credit sales were not offered?
Business
1 answer:
Alika [10]3 years ago
5 0

Answer:

increase in income = $18736

Explanation:

solution

we consider here 2 case

case 1 is

Credit Sales with bad debt estimation @ 2.2%

and

Case 2 is

Cash Sales only

so as in both the cases we are indifferent towards cash sales of $135000 as Gilmore would earn the same margin and there is no bad debt scenario.

so in case 1  gross margin is  

Gross Margin = 20% of 512000

Gross Margin  = $102400

and

Bad Debt Estimation @ 2.2% is  = $11264

so Net Margin =  $102400  -$11264  =

Net Margin =  $91136

and

in case 2 is

as company have gone for all cash sales then it will able to sell $150000 less

so cash Sales =  512000 – 150000

cash Sales = $362000    

and

Margin = 20% of 362000

Margin = $ 72400

so that  increase in income from operations by selling on credit is

increase in income from operations by selling on credit = 91136 - 72400

increase in income = $18736

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Rudik [331]

Answer:

Nonprofit organisation

Explanation:

A nonprofit organisation is also known as nonbusiness entity is dedicated to promoting a social cause by taking surplus in the society to further a particular objective. Nonprofit organisations are usually exempt from tax for the contributions they receive.

There are not accountable to shareholders but rather to donors, volunteers, program recipients, and the community at large.

4 0
3 years ago
The basic premise of​ ______ is that firms should establish objectives and evaluate strategies on criteria other than using only
mart [117]

Answer:

D, balanced scorecard

Explanation:

A balanced scorecard is a management strategy in which managers are able to assess the amount of job done by employees under their area of control.

It also helps to see whatever complications or success that are as a result of the job done by the employees.

A balance scorecard involves the satisfaction of customers by how much time, quality of service, performance of service, among other things. Also, the balance scorecard is helps to focus on some other important roles that could affect customer satisfaction.

Cheers.

3 0
3 years ago
What situations would indicate that an increase in turnover might be just what an organization needs?
Basile [38]

Answer:

Explanation:

In the context of Human Resources, turnover refers to the number of workers who leave the organization. A scenario where an increase is what is needed the most would be if the current employees are unable to efficiently and effectively complete their work and are costing the company more money than they are producing in sales. Therefore, if those employees leave the company will save money on them and can hire newer employees that may perform much more efficiently.

7 0
3 years ago
Suppose that the quantity of DVD players sold increased from 200 to 400 when the price fell from $225 to $175. Over this price r
Nataly_w [17]

Answer:

Option D.

Explanation:

Given information:

Q_1=200, Q_2=400

P_1=225, P_2=175

Formula for price elasticity of demand is

E_d=\frac{Q_2-Q_1}{P_2-P_1}\times \frac{P_1+P_2}{Q_1+Q_2}

Substitute the given values in the above formula.

E_d=\frac{400-200}{175-225}\times \frac{225+175}{200+400}

E_d=\frac{200}{-50}\times \frac{400}{600}

E_d=-\frac{8}{3}

E_d\approx -2.67

Absolute value is

|E_d|= |-2.67|=2.67

The absolute value of the price elasticity of demand for DVD players is 2.67.

Therefore, the correct option is D.

6 0
3 years ago
Tuller wants to start a commercial trucking business and also wants to form his own limited liability company (LLC). Tuller, as
sweet-ann [11.9K]

Answer:

d, all states, as no state requires at least two members to create an LLC

Explanation:

The requisite of two members to create an LLC was removed from all states in the USA. Now, all states allow a single-member LLC. Massachussets was the last one to eliminate that requisite in 2003.

Maybe this change in laws was because owners cheated on that requisite by placing as the two members (owners) a man and his wife, or a woman and her husband, or some other person (in direct relation with the owner) which was just placing the name but the company actually belonged to only one member.

4 0
3 years ago
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