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
VikaD [51]
3 years ago
10

Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attem

pt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a 15% sales commission on any merchandise sold. During the year, Mogul ships inventory with a cost of $85,000 to Ski Outfit. By the end of the year, $64,000 of the merchandise has been sold to customers for a total of $90,200. What amount of inventory will Mogul report at year end?
A. $0.
B. $5,200.
C. $12,750.
D. $21,000.
Business
1 answer:
matrenka [14]3 years ago
4 0

Answer:

correct option is D. $21,000

Explanation:

given data

sales commission = 15%

cost of inventory sent to consignee = $85,000

Cost of inventory sold by consignee = $64,000

total  = $90,200

solution

we get here inventory at the year end that is express as

inventory at the year end = Cost of inventory sent to consignee - Cost of inventory sold by consignee    ............................1

put here value and we will get

inventory at the year end = $85,000 - $64,000

inventory at the year end = $21,000

so correct option is D. $21,000

You might be interested in
If you bought a share of common stock, you would probably expect to receive dividends plus an eventual capital gain. Would the d
larisa86 [58]

Answer: Yes, the distribution between the dividend yield and the capital gains yield would influence the firm’s decision to pay more dividends rather than to retain and reinvest more of its earnings.

Explanation:

Yes, If a company decides to increase its dividend payout ratio, the dividend yield component will rise, but the expected long-term capital gains yield will decline as there is less to reinvest in the company. Also, if the company doesn't pay out dividends, there's more to reinvest in the company. Stable and older companies that are not on a growth objective rely on investors that prefer dividends more than share price appreciation. On the other hand, emerging companies, are inclined to share price appreciation to attract investors. Investors understand that all retained earnings are going towards marketing and growth objectives.

6 0
3 years ago
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.75. Michelle was willing to pay up to $6.75 for the c
miv72 [106K]

Answer:

$2

$3.50

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

$6.75 - $4.75 = $2

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

Producer surplus = price – least price the seller is willing to accept

$4.75 - $1.25 = $3.5

7 0
2 years ago
The $1,000 face value ABC bond has a coupon rate of 10%, with interest paid annually, and matures in 3 years. If the bond is pri
dybincka [34]

Answer:

Bond Price  = $951.9633746 rounded off to $951.96

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, we will use the annual coupon payment,  annual number of periods and annual YTM. The formula to calculate the price of the bonds today is attached.  

Coupon Payment (C) = 1000 * 10% = $100

Total periods remaining (n) = 3

r or YTM = 12%  

 Bond Price = 100 * [( 1 - (1+0.12)^-3) / 0.12]  + 1000 / (1+0.12)^3

Bond Price  = $951.9633746 rounded off to $951.96

7 0
3 years ago
Assume that you are a high-level manager for a shoe manufacturer. You know that your firm could increase its profit margin by pr
Vesnalui [34]

Answer:

The issue here is that you need to balance your company's profits and possible negative due to bad press.

On one side (the good and righteous side), if you do not produce shoes in Asia, your long term survival economic is doubtful, but people view your company as a company that does the right thing no matter what. Will it increase sales? Theoretically it should, but in practice it doesn't. Are Nike sales hurt because each shoe is produced in an Asian country that pays $0.25 per day? No, they aren't. The same applies to Reebok, Adidas, Puma, New Balance and every single major shoe manufacturer in the world. Bad press hurt tuna back in the 80's, but some companies are not affected by it.

The alternative (the evil, dark side of the force side) results in your company being able to survive on the long term. It will not necessarily mean that your company will grow and become the world's largest shoe manufacturer, but you will be able to survive and continue to operate.

There is also a trick that you can use to avoid reputational damage and bad press, and that is to establish a foreign subsidiary in Indonesia using a different name. Then your foreign subsidiary sells you the manufactured goods, and the blame fall son the subsidiary. Believe it or not, that simple solution is used by most corporations including clothing manufacturers, electronics, toys, etc.

If you analyze this from an ethical point of view, the alternative is much simpler. Producing in Indonesia (or India, or Burma, or Pakistan, or Vietnam, etc.) and paying a $100 salary will allow a family to live a very decent life and probably even prosper. They will have a much better lifestyle than the rest of their neighborhood. Each Indonesian worker represents one less poor family in Indonesia. On the other hand, American families will probably get hurt, but it is also much easier for an American worker to get another job that pays a normal wage (in US standards) and allows them to live well.

6 0
3 years ago
Susan Inc. has been disappointed with the Willow Division's performance over the last few years and has decided that it would be
labwork [276]

Answer:

$2,560,000

Explanation:

impairment loss = division's book value - division's fair market value = $3,080,000 - $2,320,000 = $760,000

Assets held for sale are no longer depreciated, but they must be recorded at lower value between carrying cost and fair market value. Since the fair market value is lower than carrying value, then an impairment loss results.

loss on discontinued operations = loss from operations 2019 + impairment loss = $1,800,000 + $760,000 = $2,560,000

3 0
3 years ago
Other questions:
  • During the current month, a company that uses job order costing incurred a monthly factory payroll of $180,000. Of this amount,
    15·2 answers
  • Country Fresh Ice Cream Shoppe has several competitors in the area. To have a competitive advantage, the company only uses fresh
    12·1 answer
  • El Salvador has a population density of about 620 people per square mile and neighboring Honduras a population density of about
    10·1 answer
  • What is psychology? ​
    6·2 answers
  • The management accountant at light manufacturing oversees the​ company's dayminustominusday operations at the firm. the manageme
    14·1 answer
  • During this stage, customers are growing more aware of the product and its benefits. Choose the answer.
    9·2 answers
  • According to recent market research, Google is one of the most valuable brands in the world. According to this research, the com
    14·1 answer
  • When goods are transferred from the WorkminusinminusProcess Inventory account to the Finished Goods Inventory​ account, ________
    5·1 answer
  • Which statements are true? Check all that apply: C-corporations are subject to double taxation. LLCs are best for taking venture
    10·1 answer
  • Will there always be a demand for inferior goods? how could demand for an inferior good decrease? explain.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!