A recent income statement of McClennon Corporation reported the following data:

Answer:

• What is the sales revenue in the worst-case scenario?

$ 125,032

Explanation:

Initial Scenario

TOTAL     Income Statement Unit   Quantity

$ 1,035,200 Total Net Sales       $ 647  1.600  

-$ 352,000 Variable Cost          $ 220  

-$ 64,000 Depreciation Expenses  

$ 619,200 Contributing Margin  

-$ 438,000 Annual Fixed Costs  

$ 181,200 Segment Margin  

Worst Case Scenario

Quantity drops by 3% from 1,600 to 1,552

Price decreases by 2% from $647 to $634

Variable Cost rises by 2% from $220 to $224

Annual Fixed Cost climbs by 2% from $438,000 to $446,760

Depreciation Expenses remain constant.

TOTAL Income Statement Unit Quantity

$ 984,061 Total Net Sales $ 634  1.552  

-$ 348,269 Variable Cost         $ 224  

-$ 64,000 Depreciation Expenses  

$ 571,792 Contributing Margin  

-$ 446,760 Annual Fixed Costs  

$ 125,032 Segment Margin  

Answer:

See below

Explanation:

1.

Actual manufacturing overhead costs incurred

$473,000

Subtract applied manufacturing overhead costs $25 × 19,400

($485,000)

Over-applied overhead

$12,000

2.

Beginning raw materials

$20,000

Plus raw materials purchased

$400,000

Raw materials available for use

$420,000

Minus ending raw materials

($30,000)

Raw materials utilized in production

$390,000

Less indirect materials

($15,000)

Add direct labor costs

$60,000

Add applied manufacturing overhead

$485,000

Total manufacturing costs

$920,000

Add beginning work in process inventory

$40,000

Total work in process inventory

$960,000

Less ending work in process

($70,000)

Cost of goods manufactured.

$890,000

Answer:

c. strategic network.

Explanation:

The relationship detailed in the question exemplifies a strategic network. This concept involves the organized collaboration among independent firms, fostering enduring business relationships, communication, and cooperation among the network participants, which is precisely the situation between Toyota and its suppliers.

Answer: For an explanation, please refer to the explanation section

Explanation:

recording a journal entry for Patel Products selling a delivery van priced at $20,000 with accumulated depreciation totaling $18,000, while receiving $2,000 cash from the buyer, results in:

December 29, 2019

Account title----- Cash----------Debit $2,000

Account title----Accumulated Depreciation-----Debit $18,000.

Account title------Delivery Van ----Credit $20,000

The equipment's book value at the sale was $2,000, reflecting its original cost of $20,000 adjusted by the accrued depreciation of $18,000. Since Patel received the same $2,000 from the sale of the delivery van, there is no profit from the disposal.