Answer:
The profit margin controllable by the Central Valley segment manager is: $ 95,000.
Explanation:
Only items directly controllable by the Manager should be included in the divisional financial performance measure.
<u>Central Valley Division</u>
Revenues $ 405,000
Less Variable Costs :
Variable operating expenses ($ 230,000)
Controllable Contribution $ 175,000
Less Controllable fixed expenses ($80,000)
Controllable Profit $ 95,000
Answer:
The correct answer is letter "C": produces products that are considered elastic.
Explanation:
Elasticity refers to the sensitivity of a good or service to reflect change in its supply or demand after a change in price. A product's supply is said to be elastic if the changes in the quantity supplied increases and it immediately determines a price in the price.
Thus, if for technological reasons the output of a company increases, considering that the product is elastic, the prices will increases which will provide the organization more revenue. That firm will be more than glad about the technological advance.
Answer:
E. Debit Notes Receivable $8,200; credit Sales $8,200
Explanation:
According to the problem, computation of the given data are as follows,
Sales on credit = $8,200
Notes receivable = $8,200
So, journal entries of the sales transaction are as follows,
Notes receivables A/c Dr. $8,200
To, Sales A/c. $ 8,200
(Being sales of equipment is recorded)