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SCORPION-xisa [38]
3 years ago
12

Aria Perfume, Inc., sold 3,210 boxes of white musk soap during January of 2021 at the price of $90 per box. The company offers a

full refund to unsatisfied customers for any product returned within 30 days from the date of purchase. Based on historical experience, Aria expects that 3% of sales will be returned. How many performance obligations are there in each sale of a box of soap
Business
1 answer:
Bas_tet [7]3 years ago
3 0

Answer:

Aria Perfume, Inc.

There are two performance obligations involved in each sale of a box of soap.

Explanation:

a) Data and Calculations:

Number of boxes of white musk soap sold during January 2021 = 3,210

Sales price per box = $90

Performance Obligations:

Sale of box = $87.30 (97%)

Refund for returned boxes = $2.70 (3%)

Total Sales revenue to be accounted for = $280,233

Total refund expense to be accounted for =  $8,667

Cash receipts should total =                       $288,900

b) The performance obligations are for the sale of a box of soap (97%) and refund (3%).  With a sales price of $90 per box, the sales obligation should be $87.30 per box, while the refund obligation has $2.70 per box, which must be provided and accounted for separately.

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QS 19-10 Computing contribution margin LO P2 D’Souza Company sold 6,000 units of its product at a price of $88.00 per unit. Tota
Nikitich [7]

Answer:

$218,400

Explanation:

The computation of contribution margin is here below:-

                                               Units       Cost per unit         Total

Sales                                     6,000        $88                       $528,000

Less:

Variable production cost     6,000        $40.8                  $244,800

Variable selling and

administrative costs        6,000         $10.8                   $64,800

Contribution margin                                                           $218,400

Therefore the we multiplied the sale unit with cost per unit, in the similar way we multiplied the Variable production cost unit with cost per unit and Variable selling and administrative costs with cost per unit to reach the contribution margin.

4 0
3 years ago
Goods X and Y are perfect substitutes. When the market price of good X is​ $5/unit, firm F produces 500 units of X. When the pri
goldenfox [79]

Answer:

According to this situation, we assume that firm F is the only producer of product X.

Explanation:

A perfect replacement is a condition in which two items are considered equal. Great replacements are goods and you can't build a brand whereby consumers like the commodity.

Except for a market price, optimal substitution suppliers must have no impact on the quality.

  • Therefore, in this situation product Y's price rises, so people shift for product X.
  • In results, firm F had to increase his supply which shows that firm F is the only producer of product X in the industry.

3 0
3 years ago
There are three rooms. The first one is filled with very important papers. The second one is filled with money. The third one is
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All of them at the same time? This is hard.... 0.0
8 0
3 years ago
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About the Lagrangian method, select the correct statement: We can use it to solve consumer's utility maximization problems, but
mezya [45]

Answer:

About the Lagrangian method,

We can use it to solve both consumer's utility maximization and firm's cost minimization problems.

Explanation:

Lagrangian method is a mathematical strategy for finding the maxima and the minima of a function subject to equality constraints.  Equality constraints mean that one or more equations have to be satisfied exactly by the chosen values of the variables.  Named after the mathematician, Joseph-Louis Lagrange, the basic idea behind the Lagrangian method is to convert a constrained problem into a Lagrangian function.

8 0
2 years ago
Product Y sells for $15 per unit, and has variable expenses of $9 per unit. Fixed expenses total $300,000 per year. How many uni
netineya [11]

Answer:

b. 65,000 units

Explanation:

The number of units of products y must sell to yield an annual profit of $90,000 is computed as;

Break even point in sales units = (Fixed cost + Targeted profit) / Contribution margin

Given that ;

Fixed cost = $300,000

Targeted profit = $90,000

Contribution margin = $15 - $9 = $6

Therefore,

Break even point in sales units = ($300,000 + $90,000) / $6

= 65,000 units

The number of units of products y must sell to yield an annual profit of $90,000 is 65,000 units.

3 0
3 years ago
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