Answer:
The correct answer is option (D).
Explanation:
According to the scenario, the given data are as follows:
Purchase cost = $3,300
Transportation cost = $290
Return value = $230
Discount rate = 3%
So, the total cost of merchandise can be calculated as follows:
First we less the return value from purchase value. Then,
= $3,300 - $230 = $3,070
Now, we less the discount, then
3% of $3,070 = $92.10
Net purchase value = $3070 - $92.10 = $2977.90
Now, we add the transportation cost in purchase value.then,
= $2977.90 + $290
= $3,267.90
Hence, the total cost of this merchandise is $3,267.90
Answer:
1. B
2. E
Explanation:
1. Consumer or buyers use the extended decision making as it is that decision making which involves high level of the purchase involvement, extensive internal and the extensive information search with complex evaluation of the alternatives. In case of automobiles, buyers will choose the extended decision making as it is expensive, infrequently purchased products.
2. As there is involvement of high risk of financial loss in the future purchasing power, for people or consumer, the automobiles have the situational involvement, it is the short term state which directs towards the attaching relevance of a situation or person. In other words, it is an state where, it establish a level of involvement when a consumer or person think of a specific situation or object.
Answer:
1. amount of sales = $243,000
2. margin of safety = 33.3%
Explanation:
1) required contribution margin = fixed costs + target pretax income
= 324000 + 162000
= $486,000
amount of sales = required contribution margin/ contribution margin ratio
= $486,000/20%
= $243,000
2) break-even sales = 324000/20%
= $1620000
margin of safaty sales = $2430000 - 1620000
= $810000
margin of safety = 810000/2430000
= 33.3%
Answer:
Gross Profit is $9552
Explanation:
Given data
sold = $12000
cost of goods = $3840
returns = $4800
to find out
gross profit
solution
we apply here gross profit formula that is
Cost of goods = Cost of goods - ( Return amount × Cost of goods sold / sale ) .....................1
Cost of goods = 3840 - ( 4800 × 3480/ 12000)
Cost of goods = 2448
gross profit
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = 12000 - 2448
Gross Profit is $9552
