Answer:
Explanation:
The journal entry is shown below:
Warranty expense A/c Dr $25,500
To Estimated warranty liability $25,500
(Being the estimated warranty provision is recorded)
The computation is shown below:
= Merchandise sale value × given percentage
= $850,000 × 3%
= $25,500
Simply we debited the warranty expense and credited the estimated warranty liability so that the correct posting can be done.
Answer:
the dish created by a recipe is the same each time it is followed properly
Explanation:
Answer:
Option 1 is wrong because in the case of multi-product, breakeven is weighted average which means the sales price will weighted average of sale prices of all the multi-products in the sales mix. If we change the weightings the weighted average costs and selling prices changes and so the contribution changes.
Option 2 is also sligthly wrong because Contribution margin per composite unit decreases if the volume of low contribution margin products increases in the sales mix. This means:
Breakeven Point=Fixed Cost/ Contribution per unit.........equartion 1
If the contribution per unit has been decreased the breakeven will rise.
Its impact depends upon the portfolio of products company is managing. It means it increases breakeven with high effects if the products in sales mix 2 to 3.
Option 3 is 100% right because equation 1 is
Breakeven Point=Fixed Cost/ Contribution per unit
Which says
If the contribution per unit has been decreased the breakeven will rise.
Option 4 is absolutely wrong because if we shift to higher volume in low contribution margin products, Contribution margin per composite unit decreases if the volume of low contribution margin products increases
which means Weighted average contribution has been decreased and as a result breakeven point according to equation 1 has been incresed.
The use of long-term savings to earn a financial reward is called 12 years.