Answer:
b. $69,754
b. $69,754
b. $69,754
b. $69,754
b. $69,754
b. $69,754
b. $69,754
b. $69,754
Explanation:
contribution = sales - variable cost
for Product B32L:
contribution = sales - variable cost
= 46,000 - 13800
= $32,200
for Product K84B:
contribution = sales - variable cost
= 27,000 - 14,670
= $12,330
total sales of the company = 46,000 + 27,000
= $73,000
total contribution of the company = $32,200 + $12,330
= $44,530
cotribution margin ratio = contribution/sales
= 44530/73000
= 0.61
break even point = fixed cost/cotribution margin ratio
= 42550/0.61
= $69,754
Therefore, The The break-even point for the entire company is closest to $69,754.
The gross method of recording the sale is recording an account
at its original price no deductions of the cash discounts offered.
Perpetual Inventory system bring up-to-date the inventory accounts
when there is an acquisition or sale.
The journal entry would be:
Debit:
Accounts receivable 7,800
Cost of goods sold 4,500
Credit:
Sales 7,800
Merchandise inventory 4,500
Answer:
Bad Debts Expense of $ 15,000 in the income statement and offset of receivables by $ 15,000 in the balance sheet.
Explanation:
The portion of credit sales considered to be uncollectible will be recorded as an expense in the income statement for the period. This is usually classified as bad debts expense and appears in the income statement as a debit or expense.
The corresponding credit shall be either to an Allowance for Uncollectible accounts if a provision is made or directly as a credit to the receivables account.
In either manner the effect is to reduce the receivable in the balance sheet
Answer:
50 customers per day
Explanation:
For computing the capacity required customers per day, first, we have to compute the current demand per day which is shown below:
Current demand = Average number of pets per day × estimated percentage
= 74 pets × 60%
= 44.4 per day
Now the capacity required per day would be
= (Current demand per day) ÷ (1 - capacity cushion percentage)
= 44.2 ÷ (1 - 0.12)
= 50.22 per day
