Answer:
The amount of inventory reported on balance sheet is $62,500
Explanation:
In this question, we are asked to calculate the value at which inventory will be reported on the balance sheet.
To do this, we can employ a mathematical approach.
Mathematically;
Amount of inventory reported in Balance sheet = physical inventory + goods sent on consigned + inventory purchased on fob destination
From the question, we can identify the following;
Physical inventory = $50,000
Goods sent on consigned = $10,000
Inventory purchased on fob destination = $2,500
The amount of inventory reported in balance sheet = 50,000 + 10,000 + 2,500 = $62,500
Answer:
Option 1 is wrong because in the case of multi-product, breakeven is weighted average which means the sales price will weighted average of sale prices of all the multi-products in the sales mix. If we change the weightings the weighted average costs and selling prices changes and so the contribution changes.
Option 2 is also sligthly wrong because Contribution margin per composite unit decreases if the volume of low contribution margin products increases in the sales mix. This means:
Breakeven Point=Fixed Cost/ Contribution per unit.........equartion 1
If the contribution per unit has been decreased the breakeven will rise.
Its impact depends upon the portfolio of products company is managing. It means it increases breakeven with high effects if the products in sales mix 2 to 3.
Option 3 is 100% right because equation 1 is
Breakeven Point=Fixed Cost/ Contribution per unit
Which says
If the contribution per unit has been decreased the breakeven will rise.
Option 4 is absolutely wrong because if we shift to higher volume in low contribution margin products, Contribution margin per composite unit decreases if the volume of low contribution margin products increases
which means Weighted average contribution has been decreased and as a result breakeven point according to equation 1 has been incresed.
Answer:
Record the loss contingency in the December 31, Year 1, balance sheet and also disclose the lawsuit in the footnotes.
Explanation:
Since the loss is both probable and material, then it must be recorded as a liability in the balance sheet. This is a loss contingency, and depending on whether the probability of occurrence is probable, possible or not possible, and the amount can be determined, then it will be recorded in the balance sheet, included in the footnotes or not considered.
Since the loss is probable and it can be quantified, plus the incident occurred during last year, then the loss contingency must be included as a liability. The company should also disclose the lawsuit in the footnotes.
Answer:
The correct answer is Channel Marketing.
Explanation:
The marketing channels are the routes through which the products circulate from their origin, the manufacturer, to the final consumer. These channels are formed by companies independent of the manufacturers whose function is to market, sell or help the sale of products created or manufactured by others. Let's say that the marketing channels are the ones that help sell the products of others.
Depending on the type of sales technology they use, we can find different channels:
- Traditional channels: those that, as the name implies, do not use advanced technology to achieve their ends.
- Automated channels: they use technology in a basic way to channel products towards consumption. For example, product vending machines.
- Audiovisual channels: these are the channels that use different media. For example, television to publicize their products, the telephone to contact potential buyers and a transport company to get the product home.
- Electronic channels: these are the marketing channels that use the internet as a means to connect with consumers.
