BUSINESS COLLEGE

Bramble Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bramble incurs $6750000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The weighted-average contribution margin ratio is

Answers

Answer 1
Answer:

Answer:

37%

Explanation:

The computation of the weighted average contribution margin ratio is shown below:

= Contribution margin ratio ×  weightage

= 30 × 65% + 50 × 35%

= 37%

We simply multiplied the contribution margin ratio with the weightage so that the  weighted-average contribution margin ratio could come and the same to be considered

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The profit margin ratio is the only ratio that makes up ROE that can be negative (except in relatively rare cases). Describe how the interpretation of the Asset Turnover Ratio and the Financial Leverage Ratio change based on whether the Profit Margin Ratio is positive or negative.

Chambers, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced, what is the difference between actual and budgeted costs?Chambers, Inc. uses flexible budgets. At normal ca

$2,000 unfavorable.

$2,000 favorable.

$8,000 favorable.

$6,000 unfavorable.

Answers

Answer:

The correct answer is B.

Explanation:

Giving the following information:

At the normal capacity of 16,000 units, budgeted manufacturing overhead is $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced.

Variable overhead rate= 64,000/16,000= $4

Overhead variance= real - allocated

Overhead variance= 250,000 - (4*18,000 + 180,000)= 250,000 - 252,000= 2,000 favorable

Kelly Jones and Tami Crawford borrowed $13,200 on a 7-month, 5% note from Gem State Bank to open their business, Crane’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023.

Answers

Answer:

A) Prepare the entry to record the receipt of funds from the loan

                                                                             Dr                         Cr

                                                                              $                           $

Cash                                                                  13,200

Notes Payable                                                                                13,200

Being the receipt of funds from the ban

B) Prepare the entry to accrue the interest on June 30

                                                                            Dr                         Cr

                                                                            $                           $

Interest Expense (13200 * 0.05 * 1/12)              55

Interest Payable                                                                               55

Being accrued interest as at month end June 30

C) Assuming the adjusting entries are made at the end of each month, determine the balance in the interest payable account as at December 31, 2020

= Monthly accrued interest * number of months = 55 * 7 = $385

D) Prepare the entries required on January 1, 2023 when the loan is paid back:

                                                                              Dr                         Cr

                                                                              $                           $

Notes Payable                                                  13,200

Interest Payable                                                    385

Cash                                                                                                  13,585

Being refund of loan

Explanation:

While Mary Corens was a student at the University of Tennessee, she borrowed $8,000 in student loans at an annual interest rate of 9%. If Mary repays $1,600 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.

Answers

Answer:

6.93 years

Explanation:

For computing the number of years we use the NPER formula i.e to be shown in the attachment

Given that

Present value = $8,000

Future value = $0

Rate of interest = 9%

PMT = $1,600

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the number of years is 6.93 years

Markson Company had the following results of operations for the past year: Sales (8,000 units at $20) $ 160,000 Variable manufacturing costs $ 86,000 Fixed manufacturing costs 15,000 Variable administrative expenses 12,000 Fixed selling and administrative expenses 20,000 (133,000 ) Operating income $ 27,000 A foreign company offers to buy 2,000 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $1,600 for the purchase of special tools. Markson’s annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will:

Answers

Answer:

Increase in profit   $ 1900

Explanation:

To determine the additional profit from the special order, we would consider only the costs and revenue relevant to the special order decision:

Unit relevant cost = Total variable cost/Units produced

Total variable costs = 86,000 + 12,000 =$98000

Unit relevant cost = 98,000/8,000 = $12.25

Note that fixed costs are irrelevant, whether or not the special order is accepted the fixed manufacturing and administrative expenses would be incurred. Hence, they are excluded from the computation.

                                                                                                         $

Revenue from the special order ( $14× 2,000)  =                        28,000

Relevant costs of special order ( $12.25× 2,000)                    (24,500)

Cost of special tools                                                                     (1,600)

Increase in profit                                                                              1900

Expectations of lower prices in the near future may cause some producers to do what?a. Increase the quantity supplied of the good nowb. Increase the supply of the good nowc. Decrease the supply of the good nowd. Decrease the quantity supplied of the good now

Answers

Answer:

b. Increase the supply of the good now

Explanation:

Price expectations are one of the determinants of the supply curve. Changes in expectations will make the curve move right or left depending on whether future prices are expected to be lower or higher.

If prices are expected to be lower in the future, that will generate the supply curve to shift right, increasing the quantity supplied. This has to do with producers seeking  to sell their goods at the highest price possible. If prices in the present are higher than what they would be in the future then they would want to sell more now than later.

What should an adjustment letter focus on?a. Explaining the resolution to the problem b. Preventing a recurrence of the problem c. Communicating compliance d. Blaming the customer Apologizing

Answers

Answer:

The correct answers are letters "A", "B", and "C":  Explaining the resolution to the problem; Preventing a recurrence of the problem; Communicating compliance.

Explanation:

Adjustment letters are communications with legal nature from companies to customers who filed a claim. The main purpose of the letter is to politely inform the client that the claim was received, what steps were taken to analyze the situation, what is the final resolution after the study and what will be done as a result. The ultimate goal of the adjustment letter is to keep a good relationship with the customer so they can continue doing business.

Final answer:

An adjustment letter should focus on explaining the resolution to the problem, preventing a recurrence of the issue, communicating compliance, and issuing an apology to the customer.

Explanation:

An adjustment letter should focus on several key elements to ensure effective communication and customer satisfaction. These include:

  • Explaining the resolution to the problem: The letter should clearly state what actions have been or will be taken to solve the issue. This is to reassure the customer that their issue is being handled properly.
  • Preventing a recurrence of the problem: The letter should detail the steps that are taken by the business in order not to let the issue occur again in the future, thereby showing concern for customer experience.
  • Communicating compliance: This involves ensuring that all the procedures, policies and regulatory requirements have been complied with, by apprising the customer about the same in detail.
  • Apologizing: An important part of an adjustment letter is an apology to the customer for the inconvenience they've experienced. The apology should sound sincere and indicate that the business values the customer.

The focus of the letter should never be blaming the customer. Rather, it should be centered around finding a resolution and preventing the recurrence of the problem.

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