Answer:
d. Sales allowance.
Explanation:
Gershwin Wallcovering Inc. shipped the wrong shade of paint to a customer. The customer agreed to keep the paint upon being offered a 15% price reduction. The price reduction is an example of sales allowance. Sales allowance can be defined as the reduction or decrease in the price, charging less to the customer due to some negligence of the seller, issues with product, late delivery, delayed delivery, or wrong price tag and incorrect price charged. Sales allowance is being created when the buyer has been sent the bill, but before he or she pays for it. Same is the case which can be seen here in this case where Gershwin Wallcovering Inc. has shipped the wrong shade of paint to a customer and had to offer the sales allowance.
$553,950 is the total cost of the production.
Explanation:
In the table attached the various factors are explained
The total production, direct labour, total direct labour hours per unit and the total cost is calculated.
The total production of standard production for 3 months is calculated as (30,000*$15)=$450,000
the total production of deluxe product is calculated as (6,930*$15)=>$103,950
then the sum is found to get the total cost that is $553,950.
Answer:
A. $117 million
B.13%
C. $21.75
Explanation:
B. Calculation to determine How large a loss in dollar terms will existing FARO shareholders experience on the announcement date
Expected Loss= 390*30%
Expected Loss= $117 millions
Therefore How large a loss in dollar terms will existing FARO shareholders experience on the announcement date will be $117 millions
B. Calculation to determine What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss
First step is to calculate the Existing Shares Value
Existing Shares Value =36*$25
Existing Shares Value= $900 millions
Now let calculate the Expected Loss %
Expected Loss % = $ 117/$ 900
Expected Loss % = 13%
Therefore the percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss will be 13%
C. Calculation to determine At what price should FARO expect its existing shares to sell immediately after the announcement
Price Per Share: $ 25*(1 - 0.13)
Price Per Share$25*0.87
Price Per Share: $21.75
Therefore what price should FARO expect its existing shares to sell immediately after the announcement is $21.75
Answer:
B. False
Explanation:
Land held for possible plant expansion would NOT be included as an operating asset when computing return on investment (ROI).
Return on investment (ROI) is used to measure the profitability of an investment. It helps to compare the gain or loss from an investment in relation to its cost.
Return on investment can be used to determine
1. Profitability of a stock investment,
2. Profitability of the purchase of a business investment
3. Profitability of a real estate business
ROI = Net return / cost of investment × 100
Net return= Final value of investment - initial value of the investment
Answer:
$5,000 increase
Explanation:
As Martha has the main home in Houston and in the current year she rented it for only 10 days, this means that house is rented for less than 14 days and will be still treated as her personal residence, therefore, no deduction will be available for Martha against her rental income. Martha's Adjusted gross income will be increased by an amount of $5,000.
