Answer:
d) Debit Expenses $50,000 and Claims payable $100,000; Credit Cash $150,000.
Explanation:
As for the information provided,
There was this law suit against the company from past several years. Where the lawyers already estimated that liability on the company will arise amounting $100,000.
Thus, on the provisional basis such claims of $100,000 would have been provided ideally.
Now, after final judgement the court had cleared about the claim which is $150,000.
Thus, entry to record such claim of $150,000 will be:
Expenses A/c Dr. $50,000
Claims Payable A/c Dr. $100,000
To Cash A/c $150,000
The answer is if the bank cannot make profit on the loan
Yw
Answer:
D) is 20% above expectations.
Explanation:
The Augusta Division was supposed to earn a net profit of $1,000,000 (= $2,000,000 - $1,000,000). Since the division's manager and his/her team were able to cut reduce fixed costs to $900,000 and increase contribution margin to $2,100,000 (either by increasing selling price or reducing variable costs), then the division earned a net profit of $1,200,000 (= $2,100,000 - $900,000). This net profit is 20% higher than expected, therefore the manager's (and his/her team's) overall performance was 20% above expectations.
Answer:
Intensive
Explanation:
Because the goods are expensive, and complex and requires pre-purchase assistance, the channels for this product has to be very intensive as there would be continuous purchasing as well as assistance request for the product. This simply means that service delivery and channels are to be manned intensively to meet the needs of the customers.
I hope this helps.
Answer:
Answer is in table which is attached in the attachment. Please refer to the attachment.
Explanation:
<em>Calculations:</em>
Status quo: Revenue 30* 200= 6000, VC 30*20= 4000, CM 6000-4000= 2000, 2000-3000= -1000 (Contribution Margin – fixed cost = Profit/Loss)
(b) Since the loss is less in Advertising even after $300 cost of advertisement, so we would choose the option 3 for advertising.
(c). In order to survive in the period of recession, a business needs cash and reducing operation expenses can do it better. This business is in loss from last three months so it might be useful to shut down the business for some period.
