All categories

18 days ago

Budgeted sales in Acer Corporation over the next four months are given below: September October November December Budgeted sales

$120,000 $140,000 $180,000 $160,000 Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be_____________.
a. $118,700
b. $100,500
c. $161,400
d. $141,800

Business

You might be interested in

Over a six-month period in 2007, the price of corn increased by almost 70% as a result of increased demand for ethanol biofuel.

arsen [3447]

Response:

a. Due to the rise in corn prices, the supply of corn would grow. Simultaneously, the acreage allocated for corn farming would expand.

b. The primary factor behind the change in corn production acreage is:

A. The increased price indicates to suppliers that corn is becoming more valuable.

Clarification:

As corn is essential for producing ethanol biofuel, the demand and supply for corn rise to keep pace with the climbing prices. Suppliers, for their part, respond by increasing production through the use of a larger amount of land dedicated to corn cultivation. This depicts the usual interaction of market forces that influence market equilibrium.

6 0

2 months ago

What will you use for banca/boat to move

Free_Kalibri [3773]

Answer:

a paddle

Explanation:

Utilizing a "paddle" is crucial for propelling a boat. Paddling generates a force that resists the water. This force encounters an opposing force that is equal and allows the boat to move forward.

Consequently, when you push water away, the boat gains momentum. This method is essential for effective boat movement; improper technique will hinder progress.

5 0

3 months ago

Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independe

Scilla [3833]

Answer and Explanation:

The calculation is detailed below:

1. Given that

The break-even point is 115000 units

Fixed cost = $349,600

As we know that

The Contribution Margin (CM) per unit is

= Fixed cost ÷ Break even units

= $349,600 ÷ 115,000

= 3.04 per unit

Selling price = Variable cost +CM per unit

= $4.56 + $3.04

= $7.60 per unit

2. Given that

Net Income at 15600 units is $166,000

Fixed cost = $458,000

So,

Contribution is

= $458,000 + $166,000

= $624,000

Now

CM per unit is

= $624,000 ÷ 15,600

= 40 per unit

The selling price per unit is: 120

Thus,

Variable cost per unit is

= $120 - 40

= 80 per unit

And,

CM ratio is

= CM per unit ÷ Selling price per unit

= $40 ÷ 120 × 100

= 33.33%

3. Given that

Net Operating income = $22,500

CM ratio = 25%

Actual revenue = $235,000

Therefore,

Contribution earned is

= $235,000 × 25%

= $58,750

Now

Fixed cost = Contribution - Net income

= $58,750 - $22,500

=$36,250

4. Given that

Variable cost ratio = 56%

Fixed cost = $103,840

Break even units= 23600 units

Thus,

CM per unit is

= $103,840 ÷ 23,600

=$4.40

CM ratio = 100 - 56% = 44%

And the selling price per unit is

=$4.40 ÷ 44%

=$10 per unit

Now

Variable cost per unit is

=$10 × 56%

=$5.60 per unit

And,

Contribution per unit is

= $10 × 44%

=$4.40 per unit

5 0

1 month ago