Answer:
Bad debt expenses = $4,000
Explanation:
Debit Credit
Bad debt expense $4,000
Allowances for doubtful accounts $4,000
Workings
= $5,000 of receivables - $1,000 of Allowance for doubtful account
= $4,000
Percentage, hope that helps
Except for gloves any other object can transfer bacteria.
Answer:
Option (a) is correct.
Explanation:
Contribution margin per marketing plan = Sales - Variable cost
= $3,000 - $2,000
= $1,000
A.
(1) 

Break even in marketing plan = 400
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 400 × 3,000
= 1,200,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 1,200,000
= 300,000


= 20%
B.
(1) Contribution margin per marketing plan = Sales - Variable cost
= $4,000 - $2,000
= $2,000


Break even in marketing plan = 200
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 200 × 4,000
= 800,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 800,000
= 700,000


= 47%
Therefore, option (a) would achieve the margin of safety ratio more than 45%.
Answer:
10.92%
Explanation:
The formula and the computation of the estimated cost of equity capital is shown below:
Stock price = Next year dividend ÷ (cost of equity - expected dividend growth rate)
We assume the cost of equity be X
$34 = $3.10 ÷ (cost of equity - 1.8%)
$34 X - $34 × 1.8X = $3.10
After solving this,
The cost of equity would be 10.92%