Easy career class question..:)

An income statement for Sam's Bookstore for the first quarter of the year is presented below:

Paladinen [302]

Answer:

The contribution margin for Sam's Bookstore for the first quarter is $163,000.

Explanation:

The contribution margin is the sales minus total variable cost. This can be calculated as follows:

Units of books sold = Sales / Selling price per book = $900,000 / $60 = 15,000

Variable selling expenses = Units of books sold * Variable selling expenses per book = 15,000 * $5 = $75,000

Variable administrative expenses = Sales * 3% = $900,000 * 3% = $27,000

Total variable cost = Cost of goods sold + Variable selling expenses + Variable administrative expenses = $635,000 + $75,000 + $27,000 = $737,000

Contribution margin = Sales - Total variable cost = $900,000 - $737,000 = $163,000

Therefore, the contribution margin for Sam's Bookstore for the first quarter is $163,000.

5 0

3 years ago

Jerry contributed $8,000 for a 25% interest in a bookstore. He also contributed a cash register, with a fair market value of $49

Marta_Voda [28]

Answer:

The Jerry's partnership basis in the bookstore at the end of the year is $23,350.

Explanation:

Workings

Contributed Capital = $ 8,000

Add: Adjusted basis of cash register = $ 350

Add: Share of Profit ($60000 X 25%) = $ 15,000

Partnership basis at the end of the year = $ 23,350

8 0

3 years ago

In a decision to either sell as is or process a product further, __________costs are considered irrelevant and _____________cost

MrRa [10]

In a decision to either sell as is or process a product further, joint costs are considered irrelevant and process further costs are considered relevant.

The decision of whether to sell the product right away or wait to sell it in order to earn more money. Although we think that growing the business's income is great, we also need to make sure that the costs associated with the growth will be met. We must contrast the profit margin between selling now and selling later because additional processes will demand more resources and expenses.

Additionally, we need to make an effort to maximise the return on our investment. Additional processes might need more money spent on equipment. These factors require us to apply the sell or process further technique in order to choose the best course of action.

Typically, this scenario occurs in a joint product where one or more outputs can be generated and produce additional revenue. The joint products are produced at the same cost up until the point where they are divided and further sold or processed. Although the products can be sold at the split point, there are instances when continuing developing them is more profitable.

Learn more about joint cost here brainly.com/question/14988439

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6 0

1 year ago

The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4

Bezzdna [24]

Answer:

a. Manufacturing overhead rate - Department 100 = $57,500 / 4,000 hours = $14.375 per machine hours

Manufacturing overhead rate - Department 200 = $62,500/8,000 hours = $7.8125 per machine hours

b. Journal Entries

S/N Account Titles Debit Credit

1 Inventory - Raw material $110,000

Account Payable $110,000

2 Work in process $32,500

Manufacturing overhead $7,500

Inventory - Raw materials $40,000

3 Work in process $52,500

Manufacturing overhead $11,000

Materials control $63,500

4 Manufacturing overhead $17,250

Leasehold payable $16,250

Utilities payable $1,000

5. WIP Control (14,375*800) $11,500

Manufacturing overhead allocation $11,500

c. Particulars Dep 100 Dep 200 Total

Direct materials $32,500 $13,500 $46,000

Direct labour $52,500 $13,500 $106,000

Manufacturing overhead $35,750 $18,750 $54,500

(11,000+7,500+16,250+1,000

+9,000+4,750+3,750+1,250)

Total Cost of Job A $120,750 $85,750 $206,500

7 0

3 years ago

A. What is a benefit of international trade to households?

devlian [24]

Answer:

a. Increased wealth due to lower prices and greater product diversity b. Ability to use productive resources found only in other countries.

Explanation:

A: Benefits of International trade for households, is an increase in wealth as a consequence of the drop in prices of goods that are imported (because these products are produced efficiently abroad), and a potential drop in prices of local goods because productive factors could potentially be more efficiently allocated increasing the productivitiy of such factors. Households also benefit because a higher diversity of products could expand their utility curve by richer consumption alternatives. B: Benefits of international trade for firms is an expansion of the disposable resources available to produce local goods, which could increase the productivity per productive factor by relatively lower prices of resources and higher quantities.

6 0

3 years ago