They are all picking the largest manufacturing organizations because they are well known. This manufacturer takes the time to advertise and promote themself where different businesses are aware of who they are and want to use them. By investing in your business and advertising, you have a greater chance of reaching more clients.
Answer:
We should discontinue Product B
Explanation:
We should check if Product B generates a contribution or not:
We subtract from the sales revenues the variable cost:
revenue 39,500
variable cost of goods sold (25,500)
variable selling expenses <u> (16,500) </u>
Contribution (2,500)
<em>As the contribution is negative, we should discontinue </em>Product B as is less expensevely to stop production than continue.
Answer: A Contract was formed on February 5th
Explanation:
The contract was formed the very day that Bob mailed Ann his acceptance which was on the 5th of February.
Ann attempted to revoke the acceptance too late as she did it a day after he had emailed his acceptance even though she only received it on the 7th.
The date she received the acceptance is of no consequence because this falls under the Posting Rule. This rule in Common Law countries essentially states an agreement is made as soon as the letter is posted even if it never gets to it's destination.
Answer:
Amount of cash paid on Aug 16 = <u>$8,167.50</u>
Explanation:
As for the information provided the terms of purchase are,
1% discount if payment made within 10 days,
and a total credit period of 30 days without any discount beyond 10 days.
Here, inventory purchased on August 7 = $9,750
Less; Return on 11 August = $1,500
Net Purchases = $8,250
Since payment is made on 16 August that is within 10 days from purchase discount will be received
= $8,250 1% = $82.50
Amount of cash paid on Aug 16 = $8,250 - $82.50 = $8,167.50
<span>A life or health insurance policy is owned by an employee, but the premiums are paid by the employer: o The premiums are treated as taxable income to the employee. o The employer may deduct the premiums against business income as long as the premiums are a reasonable business expense.</span>