Answer:
$10,000
Explanation:
Net Credit Sales $250,000
Allowance for Doubtful Accounts $250,000*4%=$10,000
Bad Debt Expense will be $10,000
Bad Debt Expense Dr.$10,000
Allowance for Uncollectible Cr.$10,000
Answer:
It would take 162 minutes to make one unit of product X.
Explanation:
Giving the following information:
Hours available to produce the products are the constrained resources.
Soap could reduce the processing time for X by 10 percent.
X Y
Sales Price $20 $25
Variable Cost 14 15
Hours needed to process 3 5
<u>First, we need to determine the number of minutes required to make one unit of Product X under the new method:</u>
Number of minutes required= (3*60)*0.9= 162 minutes.
It would take 162 minutes to make one unit of product X.
B) False. The contribution margin per hour of Product B is higher than product Y.
C) False. The contribution margin per hour of $2 was before the improvement in product X.
D) False. Product Y has a higher contribution margin per unit but lower compared to the contribution margin per hour.
Answer:
The answer is A
Explanation:
An increase in an effective maximum legal price will do what to prices and quantities sold in a market?
A maximum legal price is an effective tool to control prices. Usually, the price is below its equilibrium. An increase in the maximum legal price will increase prices and the quantities sold will decrease. When prices go up, companies offer more quantities of a product, but consumers demand less.
Answer:
a. Return on Investment
ROI= Operating income/Average invested assets
Beverage Division ROI = 358 / (2,680+2,602) /2
= 358 / 2,641
= 0.13555
= 13.56%
Cheese Division ROI = 643 / (4,473 + 4,409)/2
= 643 / 4,441
= 0.14478
= 14.48%
b. Profit margin
Profit Margin= Operating income / Sales
Beverage Division = 358 / 2690
= 0.13309
=13.31%
Cheese Division = 643 / 3934
= 0.16345
= 16.35%
c. Investment turnover for the year
Investment turnover = Sales / Average invested assets
Beverage Division = 2690 / 2641 = 1.02
Cheese Division = 3934 / 4441 = 0.89
d. Beverage$'m Cheese'million
Average Assets 2641 4441
Targeted return 8% 8%
Target income 211 355
Residual Income Beverage'm Cheese'm
Operating income 358 643
Less: Target income 211 355
Residual Income 147 288
Inside.
If the economy is inefficient, its actual output combination will lie inside the production possibilities curve. This curve represents the opportunities for production in a given economy with the most efficiency being gained by producing along the curve. Any points within or inside the curve are considered inefficient, whereas points outside the curve are considered unavailable or inaccessible without changes in technology or innovation.
