Answer:
60%
Explanation:
Contribution margin ratio is calculated by dividing the contribution margin amount by sales.
Contribution margin is sales less variable cost to produce a product.
Sale price 150
Variable cost (60)
Contribution margin 90
Contribution margin ratio: 90 / 150 = 60%
Answer:
Annie should increase the order size to 148 bottles per order and she will be able to save $91.85 per year.
Explanation:
we must calculate the economic order quantity (EOQ) in order to determine the size of the order that reduces costs:
EOQ = √[(2 x S x D) / H]
- S = cost per order = $35
- D = annual demand = 2,500 bottles of shampoo
- H = holding cost per unit) = $8
EOQ = √[(2 x 35 x 2,500) / 8] = √(175,000 / 8) = √21,875 = 147.90 ≈ 148 bottles of shampoo
total cost when ordering 100 bottles = (25 orders x $35) + (100/2 x $8) = $875 + $400 = $1,275
total cost when ordering 148 bottles = (16.89 orders x $35) + (148/2 x $8) = $591.15 + $592 = $1,183.15
Annie will save $1,275 - $1,183.15 = $91.85 per year
Answer:
Explanation:
a. Provide the journal entry for the vacation pay
Employees earned vacation pay of $39,500 for the period.
Debit Credit
Vacation pay expense A/C $39,500
Vacation payable A/C $39,500
<em>(Being vacation pay accrued for periods) </em>
b. Provide the journal entry for the pension benefit.
9% of employee salaries and the salaries were $750,000
=> The pension plan requires a contribution to the plan administrator: $750,000*9% = $67,500
Debit Credit
Pension expense $750,000
To cash A/C $67,500
To unfunded pension liabilities $683,500
Hope it will find you well.
Answer:
A. the income effect dominates the substitution effect
Explanation:
Answer:
He should not contribute the property to the partnership.
Explanation:
There is an ensuing loss if the partner contributes the property to the partnership instead of a gain. Partnerships recognize the basis of contributed capital. They usually compare the fair market value with the book value to determine if a loss has been incurred or a gain made. However, the tax consequences of the contributed property will be allocated to the partner making the property contribution.
