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xxTIMURxx [149]
3 years ago
6

Ivanhoe, Inc. estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The rate of ma

rkup on cost is 20%. The following account balances are available: Inventory, March 1 $540000 Purchases 420000 Purchase returns 10000 Sales during March 720000 The estimate of the cost of inventory at March 31 would be
Business
1 answer:
NARA [144]3 years ago
4 0

Answer:

$350,000

Explanation:

Cost of goods sold = $720,000 / 1.20

Cost of goods sold = $600,000

Estimated cost of inventory = Inventory, March 1 + (Purchases - Purchases Return) -  Cost of goods sold

Estimated cost of inventory = $540,000 + ($420,000 - $10,000) - $600,000

Estimated cost of inventory = $540,000 + $410,000 - $600,000

Estimated cost of inventory = $350,000

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In the retail industry, ABC tries to add value to their products and services so they can attract customers who are willing to p
kicyunya [14]

Answer:

A. Differentiation strategy.

Explanation:

In a market different firms try to maintain a competitive edge over others. This is achieved by using various strategies like: Differentiation strategy, Local strategy, Regional strategy, Cost-leadership strategy, Global strategy.

In the given scenario ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price.

This is a differentiation strategy where a firm tries to make their product different from.otgers in order to maintain a competitive advantage over others

5 0
2 years ago
Let's say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how man
sveta [45]

Answer:

$240,000

Explanation:

Selling price per pair of shoes $160 x 12,000 ...1,920,000

Cost (to you) per pair of shoes $80 x 12,000 .... $960,000

Sales commission per pair  $10 x 12,000..........    $120,000

Salaries ..........................................................................$420,000

Rent................................................................................ $120,000,

Advertising..................................................................... $20,000,

Insurance .........................................................................$16,000,

Miscellaneous fixed costs ........................................<u>..$24,000,</u>

Profit ..............................................................................<u>$240,000</u>

6 0
3 years ago
Define a demand schedule
OlgaM077 [116]

In economics, the demand schedule is a table showing the quantity demanded of a good or service at different price levels. The demand schedule can be graphed as a continuous demand curve on a chart where the Y-axis represents price and the X-axis represents quantity.

7 0
3 years ago
g On January 1, a machine with a useful life of four years and a salvage value of $13000 was purchased for $77000. What is the d
Aleonysh [2.5K]

Answer:

Annual depreciation= $16,000

Explanation:

Giving the following information:

Purchase price= $77,000

Useful life= 4 years

Salvage value= $13,000

Under the straight-line method, the depreciation expense remains constant during the life of the asset.

<u>To calculate the depreciation expense, we need to use the following formula:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (77,000 - 13,000) / 4

Annual depreciation= $16,000

3 0
2 years ago
Playful Pens, Inc., makes a single model of a pen. The cartridge for the pen (which contains the ink) is manufactured on one mac
Elan Coil [88]

Answer:

a) B. Machine 2

b) $220,000

b-2) Yes , positive differential profit.

c-1) $162,000

c-2) Yes , positive differential profit.

Explanation:

B) Differential revenues  = $10.40 x 200,000 = $2,080,000

Differential costs:

Variable cost on new production = $5.20 x 200,000 = $1,040,000

Fixed costs = $820,000

differential profit = $2,080,000 - $1,040,000 - $820,000 = $220,000

c) Differential revenues  = $10.40 x 100,000 = $1,040,000

Differential costs:

Variable cost increase on current production = ($4.62 - $4.10) x 800,000 = $416,000

Variable cost on new production = $4.62 x 100,000 = $462,000

differential profit = $1,040,000 - $878,000 = $162,000

5 0
3 years ago
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