Handel Company uses the allowance method for estimating uncollectible accounts.

One of the growers is excited by this advancement because now she can sell more crops, which she believes will increase revenue

Free_Kalibri [3773]

<span>To assess if the new development will lead to increased sales in relation to price elasticity of goods, one must evaluate the effect a reduction in price will have on demand for the product being sold and how significantly a decrease in price will increase demand proportionally.</span>

7 0

2 months ago

Natalie wants to make a 25% profit on her $70,000 land investment (there is no mortgage). She figures agents charge a 6% commiss

Nady [3600]

Natalie intends to achieve a 25% profit on a sale of $70,000. To calculate, she does the following:

(125 ÷ 100) × 70000 = $87500.

Natalie aims for $87500, however, the agent will take a 6% commission on the sale price, so she must include this amount, calculated as:

(106 ÷ 100) * 87500 = $92750.

For the total of $92750, there is an additional closing cost of $1200,

This gives us $92750 + $1200 = $93950.

When rounding $93950 to the nearest hundred, we arrive at $94000.

Therefore, to secure a 25% profit, Natalie should set the final sale price at $94000.

7 0

3 months ago

Read 2 more answers

During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cle

stepan [3596]

Answer:

d.92 units.

Explanation:

Total units completed plus

the completed portion of ending WIP minus

the completed portion of beginning WIP

Total units completed and transferred 100

ending WIP of 10 units x 40% = 4 units

beginning inventory of 20 units x 60% complete equals (12) units

Equivalent Units for conversion 92

3 0

2 months ago

DeShawn's Detailing is a service that details cars at the customers' homes or places of work. DeShawn's cost for a basic deta

Katen [3525]

Answer:

DeShawn should not continue offering the engine detailing service

Explanation:

Given data

Cost = $40

Charge = $75

Total price = $90

Additional charges amount to $20

To determine

Whether DeShawn should proceed with the offer

Solution

Here, we know DeShawn's marginal benefit is Marginal benefit = total price - charge

Marginal benefit = 90 - 75

Marginal benefit = $15

Given that the additional charge is $20

Thus,

the marginal cost exceeds the marginal revenue

Hence, DeShawn should not continue the engine detailing service

8 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

= $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

2 months ago