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
How is economy affected by wise consumers?​
zloy xaker [14]

Consumers participate in, help guide and are ultimately some of the benefactors of the invisible hand of the market. Through competition for scarce resources, consumers indirectly inform producers about what goods and services to provide and in what quantity they should be provided.

ꃳꏂ ꁝꋬꉣꉣꌦ 4ꏂ꒦ꏂꋪ ♥️

<h3>#J.ꋪ</h3>
3 0
2 years ago
Guinan Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direc
Tresset [83]

Answer:

$4,200 over applied

Explanation:

For computing the over applied overhead, first we have to find out the predetermined overhead rate which is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

= $327,080 ÷ 14,800 hours

= $22.1

Now we have to find the actual overhead which equal to

= Actual direct labor-hours × predetermined overhead rate

= 13,900 hours × $22.1

= $307,190

So, the overhead over applied would be

= Actual manufacturing overhead - applied overhead

= $302,990 - $307,190

= $4,200 over applied

7 0
3 years ago
Visic Corporation, a manufacturing company, produces a single product. The following information has been taken from the company
Vilka [71]

The Schedule of cost of goods manufactured for the year of Visic corporation is shown below.

                                    Visic Corporation

                   Schedule of Cost of Goods Manufactured

Particulars                                                             Amount (in $)

Direct materials:

Raw materials inventory, beginning ..................... 20,000

Add: Purchases of raw materials..........................480,000

Raw materials available for use ...........................500,000

Deduct: Raw materials inventory, ending ..............30,000

Raw materials used in production........................ 470,000

Direct labor..............................................................90,000

Manufacturing overhead ........................................300,000

Total manufacturing costs.......................................860,000

Add: Work in process inventory, beginning..............50,000

                                                                               910,000

Deduct: Work in process inventory, ending..............40,000

Cost of goods manufactured ..................................870,000

Hence, the schedule of cost of goods manufactured will be as shown above.

Learn more about cost of goods manufactured:

brainly.com/question/14610175

#SPJ4

5 0
1 year ago
Apple is constantly striving to introduce new products into the marketplace. At the initial stage, Apple design teams are separa
Leviafan [203]

Answer:

Idea generation.

Explanation:

The new product development process is a process of taking a product to the market. It is a part of product design. The process continues till the life cycle of product is over.

There are several stages of the new product development.

The stage in which the Apple company is, in the given scenario, is idea generation.

Idea generation is the first stage of the new product development. In this stage, the company seeks for ideas for creating or developing new products.

Therefore, idea generation is the correct answer.

5 0
2 years ago
A car dealer who sells only late-model luxury cars recently hired a new salesman and believes that this salesman is selling at l
Natasha2012 [34]

Answer:

t=\frac{5000-5600}{\frac{800}{\sqrt{16}}}=-3      

Explanation:

Data given and notation      

\bar X=5000 represent the sample mean      

s=800 represent the standard deviation for the sample      

n=16 sample size      

\mu_o =5600 represent the value that we want to test    

\alpha represent the significance level for the hypothesis test.    

t would represent the statistic (variable of interest)      

p_v represent the p value for the test (variable of interest)  

State the null and alternative hypotheses.      

We need to conduct a hypothesis in order to determine if the mean is lower than 5600, the system of hypothesis would be:      

Null hypothesis:\mu \geq 5600      

Alternative hypothesis:\mu < 5600      

We don't know the population deviation, so for this case is better apply a t test to compare the actual mean to the reference value, and the statistic is given by:      

t=\frac{\bar X-\mu_o}{\frac{s}{\sqrt{n}}} (1)      

t-test: "Is used to compare group means. Is one of the most common tests and is used to determine if the mean is (higher, less or not equal) to an specified value".  

Calculate the statistic      

We can replace in formula (1) the info given like this:      

t=\frac{5000-5600}{\frac{800}{\sqrt{16}}}=-3      

4 0
3 years ago
Other questions:
  • The drugstore chain CVS uses loyalty-card data to better understand what consumers purchase, the frequency of store visits, and
    6·1 answer
  • Help please! and thank you &lt;3
    6·2 answers
  • The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n):
    13·1 answer
  • Accounts receivable balances are required to be reflected at net realizable value as of the balance sheet date. Use of the allow
    12·1 answer
  • The final step in the decision-making process requires that mangers: a.select from a set of potential alternatives. b.identify t
    8·1 answer
  • When senators decide it is time to vote on a bill, they begin a procedure called a __________ to indicate the time for discussio
    15·2 answers
  • Marigold Corp. gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per books
    12·1 answer
  • Runners Feet, a shoe store, orders one hundred pair of athletic shoes from Speedster Inc. Absent a contrary agreement between th
    12·1 answer
  • So there this girl and she is ...um ...a lot we were friends for along time and then she started starting fights with me and bei
    7·1 answer
  • True or false: a contra-asset account, such as accumulated depreciation, will have a normal debit balance.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!