Answer:
FOB destination means "Free on Board Destination.
1. Goods transit shipped to Abbey (purchaser) FOB Destination
Answer: Exclude from inventory
2. Goods in transit shipped to Abbey (purchaser) FOB Shipping Point
Answer: Include in inventory count
3. Goods transit shipped by Abbey (seller) FOB Destination
Answer: Include in inventory
4. Goods in transit shipped by Abbey (seller) FOB Shipping Point
Answer: Exclude from inventory
Answer:
Margin of safety= $60,000
Explanation:
Giving the following information:
A firm's forecasted sales are $250,000 and its break-even sales are $190,000.
The margin of safety is the excess of sales from the break-even point. To calculate the margin of safety, we need to use the following formula:
Margin of safety= (current sales level - break-even point)
Margin of safety= 250,000 - 190,000= 60,000
Answer:
Stage 1: hear from others and listen to feedback
Stage 2: Create new ideas based on that feedback
Stage 3: Create several prototypes and choose one. Then test the prototype
Stage 4: Manufacture the prototype you chose
Explanation:
Answer:
Knit units = 1,600
Hard units = 400
Explanation:
The calculation of sold of knit hats and hard hats is shown below:
For computing the sold of knit hats and hard hats first we need to find out the total of Knit Hats and Hard Hats and secondly we need to find out the Break even sales in units
Knit Hats Hard Hats Total
Sales a $15.00 $25.00
Less: Variable
Expenses b $5.00 $10.00
Contribution Margin $10.00 15.00
c = a - b
Weight d 0.80 0.20
Weighted Contribution 8.00 11.00
e = c × d
Now,
Break even sales in units = Fixed cost ÷ Contribution margin per unit
=$22,000 ÷ 11
= 2,000 units
So,
Knit Hats to be sold = Break even sales in units × Knit percentage
=2000 × 80%
= 1,600 units
Hard Hats to be sold = Break even sales in units × Hard hats percentage
= 2,000 × 20%
= 400 units
