If Vickers Company issues 5,000 shares of $5 par value common stock for $175,000, A. Paid-In Capital in Excess of Par will be cr

Answer and Explanation:

a. The calculation of the net operating income is detailed below:

Sales                          $800,000

Less: Variable cost  -$381,000

Contribution margin $419,000

Less:  Fixed manufacturing expenses - $263,000

Less: Fixed selling and administrative expenses - $211,000

Net operating income or (Loss) -$55,000

b. The analysis of the financial impact of discontinuing product D14E is as follows:

Sales                          $800,000

Less: Variable cost  -$381,000

Contribution margin $419,000

Less:  Fixed manufacturing expenses - $202,500

Less: Fixed selling and administrative expenses - $117,500

Financial disadvantage -$99,000

Since there is a financial disadvantage, the product should not be discontinued

We simply utilized the aforementioned equation

Response:

Sept. 1

Merchandise $8,000 (debit)

Accounts Payable $8,000 (credit)

Merchandise acquired on credit

Sept. 3

Accounts Payable $1,000 (debit)

Merchandise $1,000 (credit)

Returned Merchandise to Vendors

Sept. 7

Merchandise $1,500 (debit)

Accounts Payable $1,500 (credit)

Merchandise obtained on credit

Sept. 14

Accounts Payable $1,500 (debit)

Cash $1,470 (credit)

Discount obtained $30 (credit)

Settling amounts owed and acknowledging cash discount

Sept. 20

Accounts Payable $7,000 (debit)

Cash (credit)

Settlements for amounts owed

Clarification:

Journal entries along with their descriptions are outlined above.

Explanation:

The process of making purchase decisions online or through mobile devices differs from shopping in physical stores based on the unique aspects of each shopping setting.

As outlined by Kotler and Keller, the consumer purchase decision process consists of five stages:

1. recognition of problem or need,
2. searching for information,
3. assessment of alternatives,
4. actual purchase,
5. behavior after purchase.

Consequently, consumers define the key attributes crucial for making purchases and which features yield the most advantages.

In today's world, the online shopping industry has expanded dramatically since most people now have internet access, prompting companies to enhance their online presence, which ensures the capability to also provide consumers with increased benefits, such as better discounts and promotions, due to reduced systematic and physical expenses associated with internet sales.

As a result, online shops, in comparison to brick-and-mortar stores, are more inclined to offer customers benefits during and after the purchase, alongside a wider selection of products and brands, thus broadening consumer options.

True. The Marketing Control Statement significantly aids marketers by focusing only on controllable costs, allowing them to manage both variable and programmed costs. This knowledge equips them to adjust effectively to achieve an optimal marketing mix that guarantees profitability. Furthermore, it is straightforward to prepare, making it appealing to marketers wanting to avoid the complex jargon of income statements.