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3 years ago

To generate higher profit margins, producers must work to

Business

2 answers:

Aleksandr-060686 [28]3 years ago

5 0

Answer:decrease their production cost

Explanation:because decreasing their costs would mean they will use less money on their product and people will buy it more often

dusya [7]3 years ago

4 0

Answer:

Decrease their production costs.

Explanation:

Profit margin is the ratio of gross profit to net sales expressed as a percentage. This measures how an entity is able to control its cost and can be used as inter-corporation comparison for entities in the same industry .

The cost of goods sold is subtracted from the net sales to obtain gross profit. The gross profit is in turn divided by the net sales and expressed as a percentage to obtain the profit margin.

When the cost of production is reduced or decreased, the gross profit which form the numerator of the profit margin fraction will increase and with an increase in the numerator the profit margin will go up, all things being equal.

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A company is considering replacing an old piece of machinery, which cost $105,000 and has $55,000 of accumulated depreciation to

asambeis [7]

Answer:

Replacing the old machine would produce a net saving of $1,300

The sunk cost in this situation is the purchase cost (i.e $105,000) of the old machine.

Explanation:

Differential Analysis

Purchase cost of the new machine (83,000)

Savings from annual variable cost(8500×8) 68,000

Variable cost of running the new machine (5,000×8) (40,000)

Scrap value of the old machine 56,300

Differential savings 1,300

Replacing the old machine would produce a net saving of $1,300

The sunk cost in this situation is the purchase cost (i.e $105,000) of the old machine. It is a past cost incurred as a result old decision.

7 0

3 years ago

Whispering Winds Corp. uses the periodic inventory system and reports the following for the month of June.

vesna_86 [32]

Answer:

a 1) FIFO

Closing Inventory = $1,760

Cost of Goods sold = $11,264

2) LIFO

Closing Inventory = $1,056

Cost of Goods sold = $11,968

b) FIFO gives the higher ending inventory than LIFO because the oldest items and lowest costs are allocated to the cost of goods sold.

c) LIFO results in higher cost of Goods sold because latest cost are allocated to the cost of goods sold and latest cost may include price increases.

Explanation:

FIFO

Closing inventory = 176 units * $10= $1760

Cost goods sold = 352 units + 704+528 -176 =1,408 units sold

from opening $2,112

12 June = $5632

23 June = ( 528-176) =352 units * 10 =3,520

total sold = $11,264

LIFO

Closing inventory = 176 units * 6 = $1,056

Cost goods sold = 352 units + 704+528 -176 =1,408 units sold

23 June = $5,280

12 June = $5,632

1 June = (352-176) = 176 *6 = $1,056

Total = $11,968

4 0

3 years ago

Ruby Corporation, a calendar year, accrual method C corporation, has two cash method, calendar year shareholders who are unrelat

telo118 [61]

Answer:

Explanation:

Answer:

$200000 + $200000 +$50000(to COLE's bonus)

= $450000

Ruby corporation uses accrual method.

A corporation that is using accrual method, cannot claim a deduction for an accrual with respect to a related party until the recipient reports that amount as income.

Here, Cole owns more than 50% (55%) so its a related party and it will report bonus on february 1,2017

Therefore, Ruby can not deduct bonus payable to oliver in 2016

Hence total deductible in 2017 would be $450000.

5 0

3 years ago

Zino Company determines that a customer balance of $200,from Hollis Co. is uncollectible. Zino uses the allowance method to acco

Natalka [10]

Answer:

The correct answer is A

Explanation:

The journal entry to be posted to write off the balance of uncollectible is as:

Allowance for Doubtful Accounts A/c..........................Dr $200

Accounts Receivable A/c.......................................Cr $200

As the allowance method is used so the accounts receivable account will be credited and the allowance for doubtful accounts is debited with the amount which is recovered that is $200.

Allowance method is generally refer to one of the ways for reporting the uncollectible or bad debt expense which results from a company selling the goods on credit.

3 0

3 years ago

Licensee Hilda works for broker Sergio. Hilda has not been given the commission she earned from her last transaction due to a fr

TEA [102]

Answer: Inform Sergio so he can sue the seller.

Explanation: when a fraudulent seller causes Hilda not to be given commission she earned from her last transaction, the best course of action is to let her broker, Sergio know of the fraudulent seller so he can be sued to court.

Sellers are required by law to make accurate disclosures regarding properties they sell. Failing that, they can be sued for fraud, this helps entitle the broker bringing a suit in civil law against the fraudulent seller to attorney’s fees and punitive damages.

4 0

3 years ago