Journalizing sales transactions-periodic inventory system Journalize the following sales transactions for Straight Shot Archery
using the perodic inventory system. Explanations are not required. The company estimates sales returns and allowances at the end of each month. Sold $6,500 of equipment on account, credit terms are 1/10, n/30. Straight Shot received payment from the customer on the amount due from August 1, less the discount. Sold $3,100 of equipment on account, credit terms are n/45, FOB destination Aug. 1 8 15 15 Straight Shot paid $90 on freight out 20 Straight Shot negotiated a $500 allowance on the goods sold on August 15. Received payment from the customer on the amount due from August 15, less the allowance 24 FESB-31 Jou arnalizing purchase and sales transactions-perindic imento y systenm
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Answer:
The level of production x that will maximize the profit is: 22,966
Explanation:
C(x) = 50,000 + 100x + x³
R(x) = 3400x
P(x) = R(x) - C(x)
= 3400x - [50,000 + 100x + x³]
= 3400x - 50,000 - 100x - x³
= 3300x - 50,000 - x³ .................... (A)
P'(x) = 3300(1) - 0 - 3x²
= 3300 - 3x²
At a critical point, P'(x) = 0
∴ 0 = 3300 - 3x²
3x² = 3300
x² = 1100
x = ±
P"(x) = -6x
P() = -6 (
) < 0
by second derivative, 'P' max at x = = 33.17 (rounds)
since x = ,
recall that P(x) = 3300x - 50,000 - x³ from equation (A)
Therefore, Maximum Profit
P() = 3300
- 50000 -
= 3300(33.17) - 50,000 - 33.17³
= 109461 -50,000 - 36495.26
= 22,965.74
Maximum profit is 22,966 to the nearest whole number