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bixtya [17]
2 years ago
11

On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment bu

ilding. The contract starts on July 1, 2021. Under the terms of the contract, Emmet will be paid a fixed fee of $60,000 per year and will receive an additional 10% of the fixed fee at the end of each year provided that building occupancy exceeds 80%. Emmet estimates a 25% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract. Assume that Emmet accrues revenue each month, and estimates variable consideration as the most likely amount. On November 1, Emmet revises its estimate of the chance the building will exceed the 80% occupancy threshold to a 60% chance. What is the total amount of revenue Emmet should recognize on this contract in November of 2021
Business
1 answer:
vlada-n [284]2 years ago
6 0

Answer:

$7,500

Explanation:

Calculation to determine the total amount of revenue Emmet should recognize on this contract in November of 2021

First step is to calculate the revenue amount recognized for July, August, September, and October

Recognized revenue =$60,000 × 4/12

Recognized revenue = $20,000

(July, August, September, and October=4 months )

Second step is to calculate the revenue amount to be recognized at the beginning of November

Recognized revenue= $60,000 + ($60,000 × 10%)

Recognized revenue= $66,000

Third step is to calculate the revenue amount recognized at the end of November

Recognized revenue=$66,000 × 5/12

Recognized revenue = $27,500

Now let calculate the total amount of revenue Emmet should recognize on this contract in November of 2021

Total Recognized revenue=$27,500 - $20,000

Total Recognized revenue=$7,500

Therefore the total amount of revenue Emmet should recognize on this contract in November of 2021 will be $7,500

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Which product would be considered part of the business-to-business market?
JulijaS [17]

The product that would be considered part of the business-to-business market is the <u>b) Lumber needed to make furniture</u>.

<h3>What is a business-to-business market?</h3>

A business-to-business market describes a process whereby goods or services are exchanged for the production of other goods or services.

In this market, the buying organization is not the final consumer but a producer of goods from the purchased inputs.

<h3>Question Completion with Answer Options:</h3>

a) Classes at a university for a college freshman

b) Lumber needed to make furniture

c) A haircut from a salon

d) Appliances needed for your home

Thus, the product that would be considered part of the business-to-business market is the <u>b) Lumber needed to make furniture</u>.

Learn more about the business-to-business market at brainly.com/question/25492268

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6 0
1 year ago
Krazy Kayaks sells its entryminuslevel kayaks for​ $750 each. Its variable cost is​ $500 per kayak. Fixed costs are​ $25,000 per
Daniel [21]

Answer:

Net operating income= 565,000

Explanation:

Giving the following information:

Krazy Kayaks sells its entry-level kayaks for​ $750 each. Its variable cost is​ $500 per kayak. Fixed costs are​ $25,000 per month for volumes up to​ 1,100 kayaks. Above​ 1,100 kayaks, monthly fixed costs are​ $60,000.

Sales= 2,500*750= 1,875,000

COGS= (500*2,500)= (1,250,000)

Gross profit= 625,000

Fixed costs= (60,000)

Net operating income= 565,000

7 0
2 years ago
Kirkaid Company recorded the following transactions for the just completed month:
Illusion [34]

Answer:

The correct answer is $5,000.

Explanation:

According to the scenario, the given data are as follows:

Total raw material = $118,000

Direct material = $89,000

So, Indirect material = Total raw material - Direct material = $118,000 - $89,000

= $29,000

Total labor = $142,000

Direct labor = $122,000

So, Indirect labor = Total labor - Direct labor = $142,000 - $122,000

= $20,000

Additional actual manufacturing OH = $214,000

Applied manufacturing OH = $268,000

So, we can calculate the underapplied or overapplied overhead for the month by using following formula:

Underapplied or overapplied overhead = Applied manufacturing OH - Actual OH

= $268,000 - ( $29,000 + $20,000 + $214,000)

= $268,000 - $263,000

= $5,000

Hence, the overapplied overhead is $5,000.

6 0
3 years ago
A customer is complaining to you about an issue they are having with your company’s product. You know from experience that this
Marat540 [252]

Answer:

A. Let the customer finish complaining, then explain to her why she is having the issue.

Explanation:

In dealing with customers it is important that conflicts is on de-escalation in such a way that the customer is satisfied after the transaction and does not feel bad about the incident.

In the given scenario the customer caused the issue but it is important to listen to their complaint and get clarity on the situation.

Cutting the customer short because a similar situation occurred in the past may not reveal all issues. So it is better to hear the customer's full complaint.

Then we need to explain to the customer why the customer is having the issue without emphasising they are wrong.

This will reduce bad feelings on the part of the customer

8 0
2 years ago
If a patent lawyer works for a startup without cash compensation, but receives instead shares in the presumably soon-to-be-succe
olga_2 [115]
1 or 2 mmight be the right answers but please let me know if im wrong
5 0
3 years ago
Read 2 more answers
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