Answer:
increase in income of $80
Explanation:
Prepare an Analysis of Costs and Savings if the Company buys from Outside Supplier.
Note : The fixed costs per unit at are unavoidable are irrelevant and disregarded in this decision.
<u>Analysis of Costs and Savings</u>
Purchase Price (400 widgets × $44.00) = ($17,600)
Savings :
Variable Costs ($35.60 × 400 widgets) = $14,240
Fixed Cost ( $8.60 × 400 widgets) = $3,440
Net Income effect = $80
Conclusion :
The effect on net income if the company instead buys the widgets is an increase in income of $80
If this condition arises where a business can't able to pay it's debt, creditors can expect the owner to pay the debts with their personal assets of business is called- General Partnership or Sole Proprietorship.
<h2>
What is sole proprietorship?</h2>
A sole proprietorship is an unincorporated company that is run and owned by one person. This type of business structure is the simplest because there is no legal distinction between the owner and the business.
The proprietor or dealer who owns the business uses their legal identity to carry on business. By registering a trade name with their local authority, they can also decide to conduct business under a different name.
This kind of business is the least expensive to launch. Small enterprises, independent contractors, and other people who work for themselves frequently use it because of this.
When the business owner decides or upon their passing, a sole proprietorship starts and ends.
To know more about Sole Proprietorship, refer to-
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Answer:
In deciding how many hours to work, Beulah will make a choice that maximizes her utility; that is, she will choose according to her preferences for leisure time and income.
Explanation:
People obtain utility from products they purchase and they also obtain utility from leisure time (leisure time is the time not spent at work). Generally, for people with low wages react to a higher wage by supplying a greater quantity of labor but for higher wages people who can earn so much that respond to a still-higher wage by working fewer hours.
Answer:
Wei Company
Journal Entry:
Debit Allowance for Doubtful Accounts $7,800
Credit Accounts Receivable $7,800
To write-off accounts determined to be uncollectible.
Explanation:
a) Data and Calculations:
Allowance for Doubtful Accounts (Balance) = $35,000
Uncollectible accounts:
Oakley Co. $1,400
Brookes Co. $6,400
Total = $7,800
b) The amount of $7,800 considered to be uncollectible is written off against the Accounts Receivable. This reduces the Accounts Receivable while correspondingly increasing the Allowance for Doubtful Accounts.
Answer:
Customer ID HANAR
Customer Name Hanari Carnes
Order ID 10981
Total Amount 15810.00
Explanation:
Companies focus on Customer retention policies for high valued customers. The companies do not want to upset their high valued clients and lose a great part of their sales from these customers. In this question all the high valued customers are sent gifts by the company who has shop for $10,000 or more from the company this year. From the given list we have sorted the high valued customers based on this criteria.
