This is an example of a strength based selection system. It offers a different perspective on the labor pool.
Answer:
b. credit to Rent Revenue of $3,200
Explanation:
Cash collected in advance results in the the creation of an asset and a liability. Hence a debit to cash account and a credit to deferred revenue. When the revenue is earned, it is recognized as a credit to revenue and a debit to deferred revenue with the amount earned.
Amount earned as at December 31
= 1/3 × $9,600
= $3,200
Entries required
Debit Deferred Rent revenue $3,200
Credit Rent Revenue $3,200
Being entries to recognize revenue earned as at December 31
Answer:
2.12, rounded up to 3
Explanation:
To solve the equation, we first need to set up an equation.
Let x represent the number of scarves. We want one side of the equation to be the amount earned and the other to be the cost
45x is how much they earn since each scarf is $45
70+12x is how much they cost for rent and production
45x=70+12x
Subtract 12x from both sides
33x=70
Divide both sides by 33
x=2.12
It says we should round up so 3 scarves to break even
Answer:
Salespersons will be motivated to sell more wake boards as they will create a higher commission per unit for them.
The company would rather see more skis sold as it creates the higher profit per unit for the company.
Explanation:
As from the company's perspective the sales of skies shall be more, as it offers higher revenue per unit, in form of higher contribution than that of boards per unit, the company estimates to sell more of these units.
Further, as the sales commission is based on the price of article sold, and boards have higher selling price,
As sales commission is to be earned by individual acting as agent will sell more units of boards to get higher commission.
