Answer:
B) The value of the ingredients that go into the home-cooked meal and the value of a five-dollar dinner at Burger Joint .
Explanation:
Opportunity costs can be defined as the cost for choosing one alternative investment or action over another.
If you choose to use the five dollar gift card, you are going to eat for free, although you might not enjoy that meal as much as your delicious home made dinner.
But if you choose to eat a delicious meal at home, you are going to lose the five dollars of the give card and will have to spend a certain amount of money in making the dinner. Those same ingredients could be used to prepare dinner tomorrow. That is your opportunity cost of eating at home.
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.
Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. (Omit the "£" sign in your response.)
<span>Shipping Expense: </span>
<span>(86,200 - 45,900) / (5,100 - 2,000) = £13 variable cost per unit </span>
<span>86,200 - (13 x 5,100) = £19,900 fixed cost </span>
<span>£ Y = £19,900 + £13 X </span>
<span>Salaries and Commissions </span>
<span>(238,400 - 114,400) / (5,100 - 2,000) = £40 variable cost per unit </span>
<span>238,400 - (40 x 5,100) = £34,400 fixed cost </span>
<span>£ Y = £34,400 + £40 X </span>
<span>3. </span>
<span>Redo the company’s income statement at the 5,100-unit level of activity using the contribution format. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "£" sign in your response.) </span>
<span>Frankel Ltd. </span>
<span>Income Statement </span>
<span>For the Month Ended June 30 </span>
<span>Sales revenue 912900 </span>
<span>Variable expenses: </span>
<span>Cost of goods sold 346800 </span>
<span>Shipping expenses 5,100 x 13 = 66,300 </span>
<span>Commissions 5,100 x 40 = 204,000 </span>
<span>Contribution margin 295,800 </span>
<span>Fixed expenses: </span>
<span>Fixed shipping 19,900 </span>
<span>Insurance expenses 9000 </span>
<span>Depreciation expenses 42700 </span>
<span>Sales salaries 34,400 </span>
<span>Advertising expenses 69200 </span>
<span>Net operating Income 120600</span>
Answer:
Option C-$172.50
Option C,($190,000)is correct
Explanation:
Target cost=competitive market price-target operating profit
competitive market price is $230
target operating profit is 25% of selling price=$230*25%=$57.50
target cost=$230-$57.50=$172.50
Option C is correct as a result of the above computation
Current operating income =($270-$210)*5000=$300,000
new operating income=($230-$210)*(5000*110%)
=$20*5500=$110,000
The new operating is $110,000 from $300,000 recorded earlier,in a nutshell ,the operating income would reduce by $190,000($300,000-$110,000)
Option C is the correct answer
Answer:
Both Sabrina's nominal and real income increased
Explanation:
Her nominal income during 2017 was $100,000 and it increased to $105,000 during 2018, a $5,000 increase.
Sabrina's real income during 2017 was $100,000 (using 2017 as the base year), and her real income during 2018 was = $105,000 / 1.02 = $102,941. That means that her real income increased by $2,941
