1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna007 [38]
3 years ago
14

Martha’s Quilt Shop sells homemade quilts. Martha buys the quilts from local artisans for $300 each and sells them in her shop f

or $500 each. Martha pays a sales commission of 4% of sales revenue to her sales staff. Martha pays $6,000 in rent each month and pays $1,900 per month in payroll expenses in addition to the sales commissions. Martha sold 250 quilts in March. Martha’s Quilt Shop prepares her income statement using both the traditional method and the contribution margin method. What is Martha’s Quilt Shop’s March net income under these two methods?
Business
2 answers:
Cerrena [4.2K]3 years ago
6 0

Answer:

$37,100

Explanation:

the traditional method:

total revenue = $500 x 250 quilts =                   $125,000

<u>- COGS =                                                               ($75,000)</u>

gross profit =                                                          $50,000

- sales commissions = $500 x 4% x 250 quilts = ($5,000)

- rent =                                                                     ($6,000)

<u>- salaries =                                                               ($1,900)</u>

net profit                                                                 $37,100

contribution approach:

total revenue = $500 x 250 quilts =                   $125,000

- variable product costs = $300 x 250 =            ($75,000)

<u>- sales commissions = $500 x 4% x 250 quilts = ($5,000)</u>

contribution margin =                                            $45,000

<u>fixed administrative expenses =                           ($7,900) </u>

net profit =                                                               $37,100

GuDViN [60]3 years ago
5 0

Answer:

<u>Martha’s Quilt Shop’s gross margin for March is = $50000. </u>

Explanation:

Gross margin = Sales revenues- Cost of goods sold

= ($500 per unit*250 units)- ($300 per unit*250 units)

= $125000-$75000

= $50000

You might be interested in
4. Why is China's entry into the WTO important for multinational companies like PepsiCo?
larisa86 [58]

Answer= Because the United States is already a WTO member, it does not have to lower any trade restrictions as a result of China's entry. In fact, China's entry will help reduce the trade deficit between the United States and China

7 0
3 years ago
Please answer this question for me
anygoal [31]
Shan’sdhshehsh shehshahehe shehdhs
6 0
3 years ago
Read 2 more answers
Friendly’s Quick Loans, Inc., offers you “seven for nine or I knock on your door.” This means you get $7.00 today and repay $9.0
mina [271]

Answer: Friendly's would say that you were paying an APR of 1485.71%.


We arrive at the answer as follows

First we calculate the dollar interest on the $7 loan and the rate of interest.

Dollar interest = 9 -7 = 2

\mathbf{Rate of interest on the loan = \frac{2}{7}*100 = 28.5714 percent}

This 28.5714% interest is for a loan that lasts for one week.

Since a year has 52 weeks, we can find the APR as \mathbf{28.5714 * 52 = 1485.71 percent}.

6 0
3 years ago
Starbucks expanded into the European market where their fans packed stores in Germany and the United Kingdom, but sales and prof
Alenkinab [10]

Answer:

b. Starbucks did not factor in the international dimension of the external environment

Explanation:

Starbucks was guilty of ethnocentrism because they were negligent in not evaluating or performed inadequate evaluation of the culture of French people and may have assumed erroneously due to preconceptions originating in the standards and customs, that the whole of Europe had the same culture.

Whereas the English and German people could grab a coffee on the go, the French prefer to sit and chat over coffee, and this fact was obviously ignored at the product launch stage.

3 0
3 years ago
Fuller Company makes frames. A customer wants to place a special order for 600 frames in green with the company logo painted on
joja [24]

Answer:

The qualitative factor which Fuller will consider for this order is:

b. Cost of setup labor.

Explanation:

Answer:

The qualitative factor which Fuller will consider for this order is:

b. Cost of setup labor.  

B. Cost of setup Labor: It includes salaries that are been paid to all workers working as full time and part time  

While the number of wages and the number of employees wage requirements vary by cost controls, their industries and the center on achievment of their best results with possible lower labour costs.

As any  leader of the company knows the things related to it that, the most important and biggest cost of doing any sort of  business is often labor. Cost of labor setup, which may account for as 70% of almost total business costs which include wages of the employees,their benefits, payroll and all other taxes related to them.  

Any HR professionals spend only  their 15% of time managing the labor costs. Engaging new employees, hiring new and efficient workers and developing them over their course of their career are always top of mind for HR professionals.

So, the most important point here is the cost labors setup.

8 0
3 years ago
Other questions:
  • In a market economy why is private Ownership an important source of economic prosperity
    8·2 answers
  • Watching his children graduate from high school is most likely a long-term goal for a person of which of these ages? A. 17 years
    13·1 answer
  • Risers Inc. reported total assets of $3,200,000 and net income of $255,000 for the current year. Risers determined that inventor
    15·1 answer
  • give at least 3 personal gains in your business (my gain,community gain and country gain) by considering the table below
    10·1 answer
  • Discuss the economic landscape in Philippines?​
    9·1 answer
  • Do you think the united states should adopt information-control regulations similar to britain's official secrets act? explain w
    6·1 answer
  • After posting the adjusting entry to record revenues for which the seller has performed of its obligations but has not yet colle
    11·1 answer
  • Respond to the following discussion question(s):
    13·1 answer
  • Which feature is a characteristic of secure access? select one: accounting deception environment simulation compliance
    8·1 answer
  • Managerial activities include all of the following except ________.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!