Answer:
$40,000
Explanation:
The computation of the controllable margin is shown below:
= Contribution margin - Controllable fixed costs
= $120,000 - $80,000
= $40,000
If we deduct the controllable fixed costs from the contribution margin then the controllable margin can be computed which shows an accurate amount.
All other information which is given is not relevant. Hence, ignored it
Answer:
Bad Debts (Dr.) $18,000
Allowance for Doubtful Accounts (Cr.) $18,000
Explanation:
When the management expects that it will not be able to collect a certain amount of receivable, it records Bad Debts in the Profit or Loss and a Credit entry to it is charged to contra-asset account known as "Allowance for Doubtful Accounts". It should be kept in mind that, at this stage it is only the expectation of management that the receivable from customers will not be collected. When the management is certain about the default of customer, it write-offs the Receivables. This is done by debiting Allowance for Doubtful Account and crediting Accounts Receivables. Write-off has no impact on the Net Realizable Value (Accounts Receivables - Allowance for Doubtful Account).
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Answer: Cultural factors
Explanation: Socio - cultural factors can affect the operations of companies that operate across various countries. Countries have different cultures and ways of doing things, so when a new company enters this country it needs to adapt to the culture of that country in order to become successful. The European Union (EU) consists of many different cultures. Because Johnston Chemicals is branching into the EU, the wide variety of socio - cultural, economic, technological, legal and political factors in each country will determine how the company will operate, and also how it can become one market over time.
Answer:
C. Infant-industry argument
Explanation:
The lobbyst is using the infant-industry argument because he is claiming that all that the emerging national industry needs is some temporary trade restrictions until it can develop enough to compete.
This argument is very commonly used against free trade, and is based on the belief that national industries should be allowed to grow in isolation before opening up the markets. The problem with this argument is what happens if the national industry remains uncompetitive even after a long period of trade restrictions.
