Which of these best describes the relationship

Turkey Hill Motor Homes currently sells 1,200 Class A motor homes, 2,600 Class C motor homes, and 4,000 pop-up trailers each yea

Colt1911 [192]

Answer:

The erosion cost = $ 49,190,000

Explanation:

Given:

Class A motor homes sold = 1,200

Class C motor homes sold = 2,600

pop-up trailers sold = 4,000

if the new camper is added,

decline in class A sales = 10%

Decline in class C sales = 2,100 units

Average cost of class A motor homes = $ 162,000

Average cost of class C homes = $ 59,500

Selling price for the pop-ups = $ 5,500

cost of the new mid-range camper = $ 32,900

Now,

Erosion cost is given as = Total decline in revenue from the sales

= (Decline in class A sales × Average cost of class A motor homes ) + (Decline in class C sales × Average cost of class C motor homes )

Erosion cost = ( 0.10 × 1,200 × $ 162,000 ) + ( (2,600 - 2,100) × $ 59,500 )

or

Erosion cost = 19,440,000 + 29,750,000

or

The erosion cost = $ 49,190,000

3 0

3 years ago

When selecting a venture capitalist, which one of the following characteristics is probably the least important?

Olegator [25]

Answer:

C. Underwriting experience.

Explanation:

Underwriters are known as evaluators in cases especially like that of mortgage etc, accessing the amount of risk that will involved in taking certain amount of loans. Therefore generally speaking, underwriting is simply explained as method through which an institution takes on financial risk for a fee. Risk of these such are mostly explained to be typically having dealings with loans, insurance, or investments. Certain contingencies are seen to helps to maintain certain borrowing policies for loans, establishes appropriate premiums to adequately cover the true cost of insuring policyholders, and creates a market for securities by accurately pricing investment risk.

8 0

3 years ago

Scott Company sells merchandise with a one-year warranty. Sales consisted of 2,500 units in Year 1 and 2,000 units in Year 2. It

Alenkasestr [34]

Answer:

$0

Explanation:

Scott Company must record the warranty expense and liability regarding the products sold during the years that they occur. For example, the following journal entry must be made to record the warranty expense for year 1:

Dr Warranty expense 25,000

Cr Warranty liability 25,000

During year 2, they will record the warranty expense for that year:

Dr Warranty expense 20,000

Cr Warranty liability 20,000

That means that during year 3, the only warranty expense recorded will be the one related to the goods sold during that year.

8 0

3 years ago

A $250,000 loan is to be amortized over 8 years, with annual end-of-year payments. Which of these statements is CORRECT? a. If t

Anarel [89]

Answer:

The answer is "Option b".

Explanation:

In this scenario, the second option, which would be the percentage within each transaction that's also interest instead of the full amount, would've been lower if the rate of interest were lower because interest-related transactions would have been higher at lower rates and conversely, as opposed to the main refunds.

7 0

3 years ago

Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). The company prepares a

Alina [70]

Answer:

d. Debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200

Explanation:

allowance balance 2,300 debit

estimated uncollectible accounts 31,900 credit

adjustment needed 34,200 credit

We need to adjust the allowance to our estimated uncollectible account. Currently, it has 2,300 debit balance. We need to increase it to 31,900

If we think it in two steps:

We need to credit by 2,300 to have zero balance,

and then 31,900 to reach the expected uncollectible amount

in total a credit for 34,200 needs to be done

<u>The adjusting entry will be:</u>

bad debt expense 34,200 debit

allowance for doubtful accounts 34,200 credit

8 0

2 years ago