Answer:
The sales revenue would be 170,000 if Hammer Time implements the decrease in selling price.
This would generate a decrease of $10,000 in the sales revenue
Explanation:
Understanding the way sales revenue is generated:
If the selling price drops to $10
and units sold increase by 5,000
Comparing with the previous year:
This policy decrease the sales revenue which makes the business less profitable.
Answer:
$9.7 million
Explanation:
The amount of warranty expense on Angel's 2021 income statement = Net sales x 5%
= $194 million x 5%
= $9.7 million
Thus, the amount of warranty expense on Angel's 2021 income statement will be $9.7 million
Answer:
The correct answer is Resources of the company equal creditors' and owners' claims to those resources.
Explanation:
It can be used to determine that the income or income of the consumer is exactly equal to the expense (purchase) of goods, for the determined period of consumption. In other words, by adding the value spent on the acquisition of goods "x" and goods "y". To have such values it is enough to multiply the number of possible units to acquire - in each of the points - by their respective price and then add them; This can be done at any point in the price line.
Answer:
The contribution margin statement is found below with a contribution margin of $149,800 and operating income of $145100
Explanation:
Contribution Margin Statement
Sales revenue ($720*700) $504000
Variable costs:
Cost of generators($470*700) ($329000)
Commission(5%*$504000) <u> ($25200)</u>
Contribution margin $149,800
Fixed costs
Rent ($3000)
Additional commission <u> ($1,700)</u>
Operating income $145100
Cost of rent is fixed as it is not depended on the quantity of generators sold.
Additional commission is fixed amount,so it is a fixed cost, while costs of buying generators as well as the commission of 5% are both variable costs.
<u>Explanation</u>:
Remember, Implicit cost refers to cost that do not involve monetary transactions by Jacques, while his Explicit cost includes all forms of direct payments made by Jacques to others while selling his boat.
<u>Therefore, the cost are assigned below:</u>
- The $50,000 salary Jacques could earn if he worked as a financial advisor= Implicit Cost
- The $15,000 rental income per year Jacques would receive if he chose to rent out his showroom= Implicit
- The wholesale cost of $430,000 and utility bills totaling $301,000 cost for the boats that Jacques pays the manufacturer= Explicit Cost
