Answer:
5,275
Explanation:
The targeted pretax income is the difference between the targeted total sales and the estimated total cost.
The total cost is the sum of the fixed and variable cost. The sales and variable cost are dependent on the level of activities or number of units produced and sold.
Contribution margin is the difference between the sales and variable cost.
Let the number of units to be sold be F
114F - 34F - 222,000 = 200,000
80F = 422,000
F = 422,000/80
= 5,275
Answer:
Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300
Explanation:
The journal entry is shown below:
Allowance for Doubtful Accounts A/c Dr $2,300
To Accounts Receivable A/c $2,300
(Being the written-off amount is recorded)
Since we have to record this journal entry so we debited the Allowance for Doubtful Accounts A/c and credited the account receivable account so that the correct posting can be done.
Answer:
95%, 73.1%
Explanation:
Actual output= 950 per year
Design capacity= 1300 per year (Theoretical capacity)
Effective capacity= 1000 per year (efficiency of the shop)
Now Efficiency = actual output/effective capacity = 950/1000 = 0.95, 95.0%
Utilization= actual output/ design capacity = 950/1300 = 0.7308, 73.1%
