Answer:
A: Increase Cash $6,000 and increase Unearned Service Revenue $6,000
Explanation:
As the customer is performing the payment in advance, it will generate an obligation to the business to do the wedding gowns. This will not be a revenue; it will be liability for the business until the job is done. While the job is incomplete and undelivered, it will represent unearned service revenue.
Principal (P) = $13300
Rate of interest (r) = 3.7%
Number of times compounded in a year (n) = 2
Number of years (t) = 18 years
Then
Amount = P(1 + r/n)^nt
= 13300[1 + (0.037/2)]^36
= 13300[1 + 0.0185]^36
= 13300(1.0185)^36
= 13300 * <span>1.9346
= 25730.54 dollars
From the above deduction, it can be concluded that the correct option among all the options that are given in the question is the third option or option "C".</span>
Answer:
$68,000
Explanation:
The formula to compute the gross profit is shown below:
Gross profit = Sales revenue - cost of goods sold
where,
Sales revenue = Number of bags in premium green × selling price per unit + number of bags in green deluxe × selling price per unit
= 10,000 × $8 + 3,000 × $6
= $80,000 + $18,000
= $98,000
And, the cost of goods sold is
= variable cost of green health + total fixed cost + additional processing cost
= 10,000 × $1.8 + $10,000 + $2,000
= $18,000 + $12,000
= $30,000
So, the gross profit is
= $98,000 - $30,000
= $68,000
