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bekas [8.4K]
3 years ago
13

Tickets Now contracts with the producer of Riverdance to sell tickets online. Tickets Now charges each customer a fee of $4 per

ticket and receives $10 per ticket from the producer. Tickets Now does not take control of the ticket inventory. Average ticket price for the event is $150. How much revenue should Tickets Now recognize for each Riverdance ticket sold?
Business
1 answer:
gogolik [260]3 years ago
4 0

Answer:

$14

Explanation:

Fee from customers = $4

Fee from producer = $10

Total Fee income received = 10+4 = $14

$14 should be recognized as income for each Riverdance ticket sold.

Ticket Now has sold the ticket (which is assumed to be nonrefundable) and it has performed what is required (to sale the tickets), so recognize the revenue of $14.

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Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plantwide overhead rate based on
ipn [44]

Answer:

b. $303,000

Explanation:

The activity rate

1. Machining = $\frac{\text{total cost}}{\text{total activity}}$

                    $=\frac{180000}{9000}$

                   = $ 20 per machine hour

2. Machine set up =   $\frac{\text{total cost}}{\text{total activity}}$

                    $=\frac{125000}{250}$

                   = $ 500 per set up

3. Product design =  $\frac{\text{total cost}}{\text{total activity}}$

                    $=\frac{44000}{2}$

                   = $ 22000 per product

4. Order size =  $\frac{\text{total cost}}{\text{total activity}}$

                    $=\frac{260000}{10000}$

                   = $ 26 per direct labor hour

Now the ABC cost (Product T05P)

1. Machining  = $\text{machine hours} \times \text{activity rate}$

                     = 4000 x 20

                     = $ 80,000

2. Machine set ups =  $\text{no. of set ups} \times \text{activity rate}$

                     = 90 x 500

                     = $ 45,000

3. Product design =  $\text{no. of products} \times \text{activity rate}$

                     = 1 x 22000

                     = $ 22,000

4. Order size =  $\text{direct labor hours} \times \text{activity rate}$

                     = 6000 x 26

                     = $ 156,000

Therefore, the total manufacturing overhead cost assigned to product T05P = 80000 + 45000 + 22000 + 156000

= $ 303,000

6 0
3 years ago
For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10. A)
jeyben [28]

Answer:

The correct answer is option d.

Explanation:

The 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10.  

The profit to a firm is maximized when the marginal revenue earned and marginal cost incurred are equal.  

When the firm is producing the 100th unit of output the marginal revenue is $1 higher than the marginal cost. This implies that the production of the 100th unit increases the firm's profit by $1.

7 0
3 years ago
Suppose Jones Company manufactures chairs. One model is the executive chair that sells for $120. Jones Company projects sales of
Anestetic [448]

Answer:

$32,000

Explanation:

Cost of goods sold refers to all direct expenses incurred in producing goods and excludes all selling and indirect costs.

Cost of goods sold = Sales value - Gross Profit

Gross profit = Sales value - Direct costs - overhead costs

Gross profit per unit = $120 - ($50 + $ 20 + $10)

Gross profit per unit = $40 per unit

Gross profit in value = $40 per unit × No of units = $40 × 400 units = $16,000

Budgeted sales value = Selling price per unit × Budgeted sales units

                                     = $120 × 400 chairs = $48000

Thus, budgeted cost of goods sold = Budgeted sales value - Gross Profit in value

= $48000 - $16000 = $32000

<u>Note</u>: While computing gross profit, selling and administrative expenses would be excluded since those are used while computing net income. Also, cost of goods sold excludes selling and administrative i.e . indirect costs.

5 0
3 years ago
Information-based industries are most susceptible to which one of Porter’s five forces?
nasty-shy [4]
The right answer for the question that is being asked and shown above is that: "a. rivalry among existing firms in an industry" Information-based industries are most susceptible to one of Porter’s five forces which is the a. rivalry among existing firms in an industry

7 0
3 years ago
The Gorman Group issued $970,000 of 13% bonds on June 30, 2021, for $1,042,973. The bonds were dated on June 30 and mature on Ju
omeli [17]

Answer:

Entries are given below

Explanation:

Cash should be recorded as an asset on the issuance of bonds and bonds should be credited as it is a liability for the company. Interest expense should be debited on a semiannual basis

June 30, 2021 ( issuance of bonds)

                                                          DEBIT          CREDIT

Cash                                                 1,042,973

Bonds payable                                                     970,000

Premium on bonds payable                                 72,973

December 31, 2021 ( interest expense)

                                                            DEBIT          CREDIT

Interest Expense                               62,578

(1,042,973 x 12% x 6/12)

Premium on bonds payable               472    

Cash                                                                          63,050

(970,000 x 13% x 6/12)

June 30, 2022 (interest expense)

                                                           DEBIT            CREDIT

Interest Expense                               62,550

(1,042,973-472) x 12% x 6/12)

Premium on bonds payable               500    

Cash                                                                             63,050

(970,000 x 13% x 6/12)

5 0
3 years ago
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