Answer:
The amount of sales that will be necessary to earn the desired profit is 16000 units
Explanation:
To get the amount of sales to earn $10000, we make the following equation.
Profit =Sales -variable cost-fixed cost
Profit=10000
Sales=$5.00x
Variable cost= $2.50x
Fixed cost=$30,000
Replacing,
10000=5x-2.5x-30000
10000+30000=2.5x
x=40000/2.5
x=16000
Answer:
$81 approx
Explanation:
Contribution margin refers to sales receipts in excess of variable costs incurred. This represents contribution from a product earned which is after variable costs have been incurred.
<u>Product A</u>
Selling price per unit = $88
Variable cost per unit = $38
Contribution per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = $88 - $38 = $50
Similarly, for <u>product B</u>,
Contribution margin per unit = $143 - $47= $96
<u>Products Weights Contribution Weighted contribution</u>
A 0.32 50 16
B <u>0.68</u> 96 <u>65.28</u>
1.00 81.28
Hence, weighted average contribution margin is $81.28 or $81 approx
Answer:
Debit Interest Expense, credit Cash and Discount on Bonds Payable.
Explanation:
The journal entry that a company needs to record for payment of interest is: a debit to the interest receivable account and a credit to the interest income account.
The journal entry that a company needs to record for interest expense is: a debit to interest expense and a credit to cash.
The journal entry that a company needs to record for interest expense is: a debit to interest expense and a credit to discount on bonds payable.
