How to do a trial balance in accounting

Epic Electronics is considering a strategy to charge a very high introductory price for their automobile video theater. After id

Valentin [98]

Answer:

Epic Electronics is considering a strategy to charge a very high introductory price for their automobile video theater. After identifying that their rival firms did not carry this new product, they chose this pricing strategy to achieve maximum profits. Epic Electronics has chosen a<u> skimming </u>strategy.

Explanation:

Price skimming is a pricing strategy in which a marketer fixes a relatively high initial price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management.

8 0

3 years ago

A company has the following accounts receivable and estimates of uncollectible accounts: Accounts not yet due = $61,000; estimat

Firdavs [7]

Answer:

The correct answer is $71,290.

Explanation:

According to the scenario, the computation for the given data are as follows:

Accounts not yet due = $61,000

Estimated uncollectible = 4%

So, Total uncollectible for Account not yet due = $61,000 × 4% = $2,440

Now, Accounts 1-30 days past due = $27,000

Estimated uncollectible = 15%

So, Total uncollectible for Account 1-30 days past due = $27,000 × 15% = $4,050

Similarly, Accounts more than 30 days past due = $162,000

Estimated uncollectible = 40%

So, Total uncollectible for Account more than 30 days past due = $162,000 × 40% = $64,800

Hence, the total estimated uncollectible accounts = Total uncollectible for Account not yet due + Total uncollectible for Account 1-30 days past due + Total uncollectible for Account more than 30 days past due

By putting the value we get,

= $2,440 + $4,050 + $64,800

= $71,290

8 0

4 years ago

Riverside Manufacturing designs and manufactures bathtubs for home and commercial applications. Riverside recorded the following

Papessa [141]

Answer:

variable overhead efficiency variance= $9,200 favorable

Explanation:

Giving the following information:

Riverside recorded the following data for its commercial bathtub production line during March:

Standard DL hours per tub= 4

Standard variable overhead rate per DL hour= $ 8.00

Standard variable overhead cost per unit= $ 32.00

Actual variable overhead costs= $ 18,450

Actual DL hours= 2,050

Actual variable overhead cost per machine hour= $ 9.00

Actual tubs produced= 800

We need to use the following formula:

variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard Rate

SQ= 800 tubs* 4 hours= 3,200 hours

AQ= 2,050 hours

SR= $8 per direct labor hour

variable overhead efficiency variance= (3,200 - 2,050)*8= $9,200 favorable

7 0

3 years ago

While setting the price of a product, what must managers consider? A cost of the whole marketing mix B) buying capacity of the c

Naddik [55]

Answer:

While setting the price of a product, managers must consider all of the following: A) cost of the whole marketing mix B) buying capacity of the customers C) profit it should bring the company D) transportation cost E) personnel cost to the company

Explanation:

Key factors in calculating the sale price can be:

Costs are a major factor in determining the selling price and a way of forming a price that is primarily related to costs called “ground” because it represents the minimum at which the price can be set. It includes cost plus other costs with no projected or minimal profit;

Demand/buying capacity as a key factor in price calculation is tied to a method called the "ceiling" because capacity exceeds the price limit that customers are willing to accept to get a product or service.
Competition as a pricing factor refers to alternatives that customers can choose from, and competition allows them to do so;

Cost-based pricing has its sub-methods such is Cost plus method

The basic principle is to add a rate of profit to the sum of direct and indirect costs. This way price consider a profit to it should bring to company.

Direct costs include material and labor costs, and indirect or general costs comprise a portion of fixed indirect costs such as depreciation, administration costs, sales costs and other general costs.

Formula: price = Direct costs + Indirect costs + Rate of profit

5 0

3 years ago

Current assets minus current liabilities is called

harkovskaia [24]

Answer:

working capital also called net working capital (NWC)

5 0

2 years ago