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eimsori [14]
3 years ago
15

Cycle Sporting Goods sells bicycles throughout the northeastern United States. The following data were taken from the most recen

t quarterly sales forecast: Expected Sales End-of Month Target Inventory July 1,990 units 400 units August 2,140 units 490 units September 2,070 units 460 units On the basis of the information presented, how many bicycles should the company purchase in August?
Business
1 answer:
koban [17]3 years ago
8 0

Answer: 1250 units

Explanation:

GIVEN the following ;

JULY :

Expected sales = 1,990 units

Ending of month target inventory =400 units

AUGUST:

Expected sales = 2,140 units

Ending of month target inventory =490 units

SEPTEMBER:

Expected sales = 2,070 units

Ending of month target inventory =460 units

Ending of month target inventory in July = August beginning inventory = 400units

Expected August unit sales = 2,140 units

AUGUST ending inventory = 490 units

Expected sales = beginning inventory + purchased inventory - ending inventory

2140 = 400 + purchased inventory - 490

2140 = 890 + purchased inventory

Purchased inventory = 2140 - 890

August purchased inventory should be = 1250 units

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To allocate scarce goods and resources, a market economy uses . This means that individuals will get the goods and services if t
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Answer:To allocate scarce goods and resources, a market economy uses non-price rationing preferential treatment price rationing . this means that individuals will get the goods and services if they have the ability to pay meet the government's requirements stand in line at the store.

Explanation: hope this helps u! (:

4 0
3 years ago
EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $800 budgeted pric
Harlamova29_29 [7]

Answer:

EZ-Tax

                                                      Partner                 Staff             Total

a. Sales price variance             $104,000            ($110,000)      ($6,000) U

b. Activity variance                   $160,000           $420,000     $580,000 F

c. Mix variance                           $85,000           $180,000     $265,000 F

d. Quantity variance                $189,000             $70,000     $259,000 F

Explanation:

a) Data and Calculations:

                                                      Partner                 Staff

Budgeted billable rate per hour   $800                    $210    

Budgeted variable cost per hour    375                      120

Budgeted billable hours              5,000                20,000

Budgeted revenue             $4,000,000        $4,200,000

Budgeted variable cost         1,875,000          2,400,000

Actual revenue                  $4,264,000         $4,510,000

Actual billable hours                   5,200                22,000

Actual billable rate per hour       $820                   $205

Budgeted billable rate per hour $800                    $210

Variance in price                           $20                       ($5)

Sales price variance            $104,000            ($110,000)      ($6,000)

Sales price variance = (Standard price - Actual price) * Actual billable hours

= ($800 - $820) * 5,200 + ($210 - $205) * 22,000

= $20 * 5,200 + ($5) * 22,000

= $104,000 - 110,000

= $6,000 U

Activity variance = (Actual billable hours - Standard billable hours) * Standard rate

= (5,200 - 5,000) * $800 + (22,000 - 20,000) * $210

= (200 * $800) + (2,000 * 210)

= $160,000 + 420,000

= $580,000 F

                                                  Partner                 Staff        Total

Budgeted revenue             $4,000,000        $4,200,000   $8,200,000

Budgeted variable cost         1,875,000          2,400,000      4,275,000

Budgeted contribution       $2,125,000         $1,800,000   $3,925,000

Actual revenue                  $4,264,000         $4,510,000   $8,774,000

Actual variable cost              1,950,000          2,640,000    4,590,000

Actual contribution             $2,314,000         $1,870,000   $4,184,000

Quantity variance                 $189,000              $70,000     $259,000

Quantity variance = Budgeted contribution - Actual contribution

= $3,925,000 - $4,184,000

= $259,000 F

Mix Variance:

Standard contribution margin  $425                  $90

Volume variance                         200                2,000

Mix variance =                     $85,000           $180,000

3 0
2 years ago
Swifty Company has identified that the cost of a new computer will be $30000, but with the use of the new computer, net income w
klio [65]

Answer:

10.0 years

Explanation:

The computation of the payback period is shown below

We know that

Payback period = initial cost ÷ increase in net income

= $30,000 ÷ $3,000

= 10 years

As the depreciation expense is a non-cash expense so we dont considered it

Therefore the first option is correct

8 0
2 years ago
Suppose that on Valentine's Day, the demand for both roses and greeting cards increases by the same percentage amount. However,
BigorU [14]

Answer:

Based on the information supply of cards is more elastic (price sensitive) than that of roses

Explanation:

Price elasticity of supply is defined as the sensitivity of quantity supplied to changes in price.

The formula is given below

Price elasticity of supply= Change in quantity supplied ÷ Change in price

In this scenario the demand for both roses and cards increases, however the price of roses increases more.

This implies that the denominator in the formula is higher in roses resulting in smaller price elasticity of supply.

The elasticity of supply for cards is higher than that of roses, so it is more sensitive to changes in price.

Cards can be stored from year to year so the labour for maintaining a stock of cards is low with resultant low price.

On the other hand roses require care to grow. It requires watering, application of chemicals to treat infestation and so on. So suppliers tend to push the extra cost of growing roses to the buyers

6 0
2 years ago
Read 2 more answers
Accounts receivable is categorized as an?
BigorU [14]
Current asset under Balance Sheet. :)
8 0
3 years ago
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