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3 years ago

Presented below is information from Headland Computers Incorporated.

Business

1 answer:

Fittoniya [83]3 years ago

8 0

Omitted question-- Prepare the necessary journal entries for Headland computers

Answer: Please see answers below

Explanation:

Journal to record sales revenue

Date Account and explanation Debit Credit

July 1st Account receivables $22,600

Sales Revenue $22,600

Journal to record allowances for sales returns

July 1st Sales returns and allowances $1,334

Allowances for sales return and allowances $1,334

Journal to record receipt of cash from Robertson within discount period

July 10 Cash $21,922

Sales discount $678

Account receivables $22,600

Calculation

Discount = 22,600 x 3%= $678

Cash = $22,600 - $678= $21,922

Journal to record sales revenue

July 1`7 Account receivables $256,100

Sales revenue $256,100

Journal to record receipt of cash from Clark within discount period

July 30 Cash $250,978

Sales discount $5,122

Account receivables $256,100

Calculation

Discount = 256,100 x 2%= $5,122

Cash = $256,100 -$5,122= $250,978

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LO 3.4If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin products, the break-e

kompoz [17]

Answer:

Option 1 is wrong because in the case of multi-product, breakeven is weighted average which means the sales price will weighted average of sale prices of all the multi-products in the sales mix. If we change the weightings the weighted average costs and selling prices changes and so the contribution changes.

Option 2 is also sligthly wrong because Contribution margin per composite unit decreases if the volume of low contribution margin products increases in the sales mix. This means:

Breakeven Point=Fixed Cost/ Contribution per unit.........equartion 1

If the contribution per unit has been decreased the breakeven will rise.

Its impact depends upon the portfolio of products company is managing. It means it increases breakeven with high effects if the products in sales mix 2 to 3.

Option 3 is 100% right because equation 1 is

Breakeven Point=Fixed Cost/ Contribution per unit

Which says

If the contribution per unit has been decreased the breakeven will rise.

Option 4 is absolutely wrong because if we shift to higher volume in low contribution margin products, Contribution margin per composite unit decreases if the volume of low contribution margin products increases

which means Weighted average contribution has been decreased and as a result breakeven point according to equation 1 has been incresed.

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3 years ago

A shortsighted view of customer interaction shows that:

shusha [124]

A shortsighted view of customer interaction shows that: You should figure that a customer calls or comes in, service is provided and then the customer goes away
Shortsighted view customer interaction refers to the way we describe an ideal customer interaction in a simplistic way.
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3 years ago

A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $355 per pair and cost $262.70 per pair in

shtirl [24]

Answer:

a.$92.30

b.27.55%

Explanation:

a. Computation for the contribution margin per pair

Sales 355.00 per pair

Less:Variable cost $262.70 per pair

Contribution margin $92.30 per pair

Therefore the Contribution margin per pair will be $92.30

b. Computation for the contribution margin ratio.

Using this formula

Contribution margin ratio=Contribution margin per unit/Selling price per unit

Where,

Contribution margin per unit =$92.30

Selling price per unit =$335.00

Let plug in the formula

Contribution margin ratio=$92.30/$335.00

Contribution margin ratio =27.55%

Therefore the Contribution margin ratio will be 27.55%

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3 years ago

A company issued 5-year, 8% bonds with a par value of $94,000. The company received $91,947 for the bonds. Using the straight-li

lesya692 [45]

Answer:

interest expense for the first semiannual interest period and subsequent: 3,965.3 dollars

Explanation:

face value 94,000

proceeds 91,947

discount 2,053

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2,053 / 10 payment dates = 205.3

Then, we have to add the cash outlay in favor of the bondholders:

94,000 face value x 8% coupon rate / 2 payment per year = 3,760

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3 years ago

Allocative inefficiency due to unregulated monopoly is characterized by the condition:____.

Lerok [7]

Allocative inefficiency due to unregulated monopoly is characterized by the condition: P>MC.

Allocative inefficiency happens whilst the purchaser does no longer pay a green price. A green charge is one that just covers the costs of manufacturing incurred in supplying the good or provider. Allocative efficiency occurs while the company's fee, P, equals the greater (marginal) cost of delivery, MC

Monopolies can boom fees above the marginal fee of manufacturing and are allocative inefficient. that is because monopolies have marketplace strength and may boom rate to reduce client surplus.

Allocative efficiency occurs while consumer demand is completely met by means of supply. In other words, organizations are presenting the precise supply that clients want. For an instance, a baker has 10 customers trying an iced doughnut. The baker had made exactly 10 that morning – that means there's an allocative performance.

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