Answer: $2.595mil in March and $0 in May.
Explanation:
Digby Corporation uses the Accrual Method of Accounting. This method of Accounting posits that entries should be recorded only in the period that they were incurred regardless of when payment was received or made.
This means that if Revenue is received in a certain month but only paid for in another month,the accounting records will show the entire revenue amount on the original month.
In reference to Digby, they earned a revenue of $2.595 million in March and that is the amount that they will record as Revenue in March using Accrual Accounting.
Answer:
31,000
Explanation:
Given that,
Selling price = $3.90 per pair of shoes
Variable cost = $3.50 per unit
Total fixed cost = $12,400
Contribution margin per unit:
= Selling price - Variable cost
= $3.90 - $3.50
= $0.40
Pairs must Mason sell to break even:
= Fixed cost ÷ Contribution margin per unit
= $12,400 ÷ $0.40
= 31,000
Answer:
Price Elastic
Explanation:
We know that
The formula to compute the price elasticity of demand is shown below:
= (Percentage change in quantity demanded) ÷ (percentage change in price)
The classification as follows
1. Perfectly inelastic = If zero
2. Inelastic = When elasticity is below than one
3. Unitary elastic = When elasticity is equal to one
4. Elastic = When elasticity is exceeded than one
5. Perfectly elastic = When elasticity is in infinity
Since the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good which reflects that the elasticity is more than one
Answer:
Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:
a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase due to the 30% increase in sales. This result will be different with an increase by a similar margin in the Cost of Goods Sold.
b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because this increase also increased the operating and administrative expense (depreciation), even though Sales and Cost of Goods Sold remained constant.
Explanation:
The net earnings to sales is an expression of the ratio of the net income to the sales revenue. The net earnings result after deducting all costs from sales revenue. The net earnings to total book assets are the same expression as the Return on Assets.
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