Size is limited under a Sole Proprietorship. True False

Strait Co. manufactures office furniture. During the most productive month of the year, 3,700 desks were manufactured at a total

Paladinen [302]

Answer:

Option (c) is correct.

Explanation:

Given that,

Highest level of activity = 3,700

Total cost at highest level of activity = $82,400

Lowest level of activity = 1,200

Total cost at lowest level of activity = $65,000

Here, we are using high-low method of cost estimation,

Variable cost per unit:

= (Total cost at highest level of activity - Total cost at lowest level of activity) ÷ (Highest level of activity - Lowest level of activity)

= ($82,400 - $65,000) ÷ (3,700 - 1,200)

= $17,400 ÷ 2,500

= $6.96

Fixed Costs:

= Total cost at highest level of activity - (Variable cost per unit × Highest level of activity)

= $82,400 - ($6.96 × 3,700)

= $82,400 - $25,752

= $56,648

3 0

4 years ago

On June 30, 2021, the Esquire Company sold some merchandise to a customer for $40,000. In payment, Esquire agreed to accept a 5%

EastWind [94]

Answer:

Notes Receivables 40,000 debit

Sales revenue 40,000 credit

-- to record the sale and the accepted promissory note--

interest receivables 1,000 debit

interest revenue 1,000 credit

--to adjust for interest at year-end ---

Cash 41,500 credit

Notes Receivables 40,000 credit

Interest receivables 1,000 credit

Interest revenue 500 credit

--to record the maturity and honor of the note--

If we didn't make the adjusting entr. the 2021 income will be understated by 1,000 and the 2022 overstated by 1000

as we assing the 6 month of interest from 2021 into 2022 accounting period.

Explanation:

We record the sales reveneu for the nominal. over time we are going to accrue interest.

principal x rate x time = interest

we should express rate and time in the same metric, in this case as teh rate is annual we express time in portion of a year (X month / 12)

Adjusting entry at year-end

40,000 x 5% x 6 /12 = 1,000 interest revenue

At maturity:

40,000 x 5% x 3/12 = 500 interest revenue

And we have to write-of the note receivable and the interest receivables.

4 0

4 years ago

When companies try to entice customers to make purchases by offering special incentives or excitement-building programs, includi

stealth61 [152]

Answer:

Sales Promotion

Explanation:

The method of order to persuade a potential client to purchase the product is sales promotion.

Sales promotion is meant to be used as a short-term tool to boost sales – as a means of creating long-term customer loyalty, it is rarely acceptable.

Many offers for sales are intended for customers.

5 0

3 years ago

Firms may invest in fewer projects as a result of A. an increase in interest rates that increase economic growth. B. an increase

kupik [55]

Answer: B. an increase in interest rates that decrease economic growth.

Explanation:

If interest rates were to rise in an Economy, that would mean that the cost of borrowing just rose. The rise in the Cost of Borrowing reduces consumer spending as well as business investment. This will therefore lead to a lower Aggregate demand. A lower AD in the Economy usually leads to a decrease in economic growth.

Now, if such things were to happen, a firm may definitely invest in fewer projects because first off it will be more expensive for them to borrow and invest because of the high rates. They will also be discouraged because of the Decrease in economic growth as the chances of their projects doing well will be drop in a depreciating economy.

7 0

3 years ago

If bids on keywords in a bid strategy are manually overwritten, how long will it take for the bid strategy to resume bidding on

muminat

Answer: 24 hours

Explanation:

When the max CPC is manually overriden, the new max CPC will remain for 24hours, this would make the search Ads 360 optimization system not to update the max CPC during this time. After 24hours margin, the search Ads 360 will resume optimizing your bids inorder to meet the goals of bid strategy in turn starts the max CPC manually.

5 0

3 years ago