Answer:
Sandy Shores Corporation
J's Segment Contribution Margin is:
= $700,000.
Explanation:
a) Data and Calculations:
Sales revenue $1,300,000
Variable operating expenses 600,000
Contribution $700,000
Fixed expenses:
Traceable to J and controllable by J 275,000
Traceable to J and controllable by others 80,000
Total fixed expenses 355,000
Net operating income $345,000
b) The contribution margin is the difference between total sales revenue and the variable costs. The idea of segment contribution margin is that it covers the fixed expenses, whether controllable by the segment or not.
Answer:
Supplier dependence
Explanation:
When an entity finds itself in a situation where it has to rely on a particular supplier or provider of service for its business operations, either as a result of not being able to get an alternative supplier or the importance of the suppliers product to the entity, such is called supplier dependence.
It is very risky for an entity to depend on a particular source for input. This reverse order of an entity depending on the supplier for business strategy instead of the supplier depending on the entity is not a good business practice.
It’s easy for our own strategy to be determined by what our suppliers are doing. If we become too dependent, we risk having our strategy set by our suppliers rather than having them support our strategy. I’ve been thinking a lot here recently about how much suppliers can direct you
Answer:
6.05 years
Explanation:
Payback period is the time in which a project returns back the initial investment in the form of net cash flow. For this purpose we use the net cash flows to calculate the payback.
Payback working is attached with this answer please find it.
Answer:
The cash provided by investing activities is $91900
Explanation:
The net cash provided or (used) by investing activities is computed thus:
Sale of land and building $194800
Purchase of land ($44700)
Purchase of equipment ($58200)
Net cash provided by investing activities $91900
The purchase of treasury refers to purchase of own shares from shareholders,hence it is a financing activity
Payment of dividends to shareholders is also a financing activity
Issuance of common stock and retirement of bonds are also financing activity-related,as a result they do not feature in the above computation of cash provided or used by investing activities
Answer:
The amount of depreciation expense that should be recorded for the second year is $28,600
Explanation:
The computation of the depreciation per units or bolts under the units-of-production method is shown below:
= (Original cost - residual value) ÷ (estimated production bolts)
= ($206,520 - $11,000) ÷ (752,000 bolts)
= ($195,520) ÷ (752,000 bolts)
= $0.26 per bolt
Now for the second year, it would be
= Production units in second year × depreciation per bolts
= 110,000 units × 0.26
= $28,600
