Answer:
c. $112,800
Explanation:
The computation of operating income is shown below:-
= (Contribution margin of blink division × Increase sales percentage) - Fixed cost of blink division - Allocated common costs of blink division - Allocated common costs of blur division
= ($218,000 × 135%) - $93,000 - $48,000 - $40,500
= $294,300 - $93,000 - $48,000 - $40,500
= $112,800
<span>C. Val always thought snowmobiles were really cool.</span>
Answer:
C. 30,210
Explanation:
Cost of merchandise sold = cost of merchandise purchase - cost of merchandise left in inventory
= Purchases of $32,000 - Purchases discounts of $960 - Purchases returns and allowances of $1,200 + Freight In of $1,040
- ( Merchandise inventory at September 30 of $6,370 - Merchandise inventory September 1 of $5,700)
= 32,000- 960- 1,200+1,040 - 670 = 30,210
Cost price = 6,500
Selling price + profit = 9500
Profit gained = 9,500 - 6,500 = $3000
Number of tires bought = 3000/50 = 60
The dealer bought 60 tires.
Answer: Please refer to Explanation
Explanation:
The terms will be listed in bold at the end of the statement. If you require further clarification please do comment.
a. The costs deducted from the contribution margin to determine the responsibility margin. TRACEABLE FIXED COSTS.
b. Cost to produce plus a predetermined markup. COST-PLUS TRANSFER PRICE
c. Fixed costs that are readily controllable by the manager. NONE
d. A subtotal in a responsibility income statement, equal to responsibility margin plus committed fixed costs. PERFORMANCE MARGIN.
e. The subtotal in a responsibility income statement that is most useful in evaluating the short-run effect of various marketing strategies on the income of the business. CONTRIBUTION MARGIN.
f. The subtotal in a responsibility income statement that comes closest to indicating the change in income from operations that would result from closing a particular part of the business. RESPONSIBILITY MARGIN.
g. The amount used in recording products or services supplied by one business unit to another. TRANSFER PRICE.
