The financial advantage amounts to $40,000. To determine the relevant variable cost, we can calculate it as follows: Unit variable cost = 130 + 20 = 150. The revenue from the special order (200 × $350) equals 70,000. The variable cost (200 × 150) is 30,000. Thus, the financial advantage totals 40,000. It's important to note that fixed manufacturing and selling costs have been excluded from this analysis since they remain constant regardless of the acceptance of the special order.
Response:
The buyer has the option to pursue specific performance of the contract. In real estate transactions, to be able to take legal action for specific performance, the buyer must have the necessary funds (or mortgage) ready for closing. It’s challenging to claim damages due to the unwillingness of the seller to proceed with a house sale, as houses are unique; similar properties may vary greatly in value depending on their locations.
By pursuing specific performance, the non-breaching party requests that the other party fulfill their obligations under the contract.
Answer:
Explanation:
Accounts receivable of 320,000 debit
Allowance 600 credit
Sales total 900,000
1% estimated uncollectible:
900,000 x 1% = 9,000
The necessary adjusting entry will be for 9,000
As the calculated allowance corresponds to the sales of this period, we anticipate that 9,000 will be uncollectible in the upcoming period. It’s essential to acknowledge the entire sum now; otherwise, in a future period, we will incur bad debt expense for this previous period.
Recognizing the full amount aligns with the sales period, accommodating for any future uncollectible amounts arising from these sales
36.) A
37.) uncertain, possibly D
40.) A
