Answer:
$0.40 ; $1 and $71.43%
Explanation:
The computation is shown below:
Excess cost is
= Unit cost - Salvage Value
= $1 - $0.60
= $0.40
The shortage cost is
= Selling value - unit cost
= $2 - $1
= $1
And, the optimal service level is
= Shortage cost ÷ (Shortage cost + excess cost)
= $1 ÷ $1.60
= 71.43%
Basically we applied the above formulas
<span>more
increasing
i am not super sure</span>
Answer:
<em><u>P (x) = 80x - 2x^2 - 3</u></em>
Explanation:
The Profit function is the revenue minus the cost.
Revenue = Price x Quantity = X.px = x(88-2x) = 88x - 2x^2
Therefore the profit function P (x):
P (x) = 88x - 2x^2 - (8x+3)
<em><u>P (x) = 80x - 2x^2 - 3</u></em>
<em><u /></em>
To maximise profit we use the 1st order condition: dP(x)/dq = 0
Therefore, 80 - 4x = 0
4x = 80
x = 20
So 20 leashes maximises profit.
P(x) = 80(20) - 2(20)^2 - 3
<em><u> P = $803 </u></em>
<em><u /></em>
The price to charge would be:
<u><em>p (x) = 88 - 2(20) = $48</em></u>
<u><em>The best reason would be that the price is a bit expensive for a leash so most people would not buy it.</em></u>
Answer:
The correct answer is False.
Explanation:
The key accounting issue related to bundled (multiple-element) sales transactions is the timing of revenue recognition.
The fundamental principle is that an entity recognizes revenue to reflect the transfer of goods or services committed to customers for an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods or services.
Answer:
Lewis CPAs:
service revenue: 60,000
Salaries expense: (40,000)
Net Income 20,000
Casual Clothing:
sales revenue 60,000
cost of goods sold: (32,000)
Gross Profit 28,000
operating expense (7,200)
Net Income 20,800
Explanation:
The net income is the difference between the revenues and expenses.
For Casual Clothing we also need to calcualte the gross profit which is, the difference between the sales revenue and the cost of the good sold.
After that, we subtract the other operating expense to arrive the net income