Jamestown Industries sells $48,000 in gift cards and expects 20% breakage. Cost of goods sold is 25% of each gift card. When the expected gift cards are redeemed, how much cost of goods sold will Jamestown record? O $12,000 $24,000 O $10,000 O $9,600
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Jamestown Industries sells $48,000 in gift cards and expects 20% breakage. Cost of goods sold is 25% of each gift card. When the expected gift cards are redeemed, how much cost of goods sold will Jamestown record? O $12,000 $24,000 O $10,000 O $9,600
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- Assume that RR purchases $200,000 (net of discounts) of materials on terms of 1/10, net 30, butthat it can get away with paying on the 40th dayif it chooses not to take discounts. How much freetrade credit can the company get from its equipment supplier, how much costly trade credit can itget, and what is the nominal annual interest rateof the costly credit? Should RR take discounts?Umbridge Purses Unlimited sells purses with a sales price of $25.00 each. Each purse costs the company $20.00 to produce, and the store incurs a total of $210,000 in fixed costs each year. What is the yearly breakeven point in units? Select one: O O C a. 10,500 purses b. 21,000 purses c. 8,400 purses d. 42,000 purses e. None of these options are correct.Crystals’. currently makes all sales on credit and offers no cash discount. The firm is considering a 3% cash discount for payment within 10 days. The firm's current average collection period is 90 days, sales are 400 art pieces per year, selling price is R25 000 per art piece, variable cost per item is R18 750, and the average cost per item is R21 000. The firm expects that the change in credit terms will result in a minor increase in sales of 10 items per year that 75% of the sales will take the discount, and the average collection period will drop to 30 days. The firm's bad debt expense is expected to become negligible under the proposed plan. The bad debt expense is currently 0.5% of sales. The firm's required return on equal-risk investments is 20%. (Assume a 360-day year). QUESTION 5 What are the savings of marginal bad debts under the proposed plan? 1. R500 000 2.R50 000 3.R10 000 4. R5000
- Crystals’. currently makes all sales on credit and offers no cash discount. The firm is considering a 3% cash discount for payment within 10 days. The firm's current average collection period is 90 days, sales are 400 art pieces per year, selling price is R25 000 per art piece, variable cost per item is R18 750, and the average cost per item is R21 000. The firm expects that the change in credit terms will result in a minor increase in sales of 10 items per year that 75% of the sales will take the discount, and the average collection period will drop to 30 days. The firm's bad debt expense is expected to become negligible under the proposed plan. The bad debt expense is currently 0.5% of sales. The firm's required return on equal-risk investments is 20%. (Assume a 360-day year). QUESTION 4 What is the cost of marginal investment in accounts receivable under the proposed plan? R246 875 R276 500 R313 460 R368 314certain spare parts has a selling price of P150 if they would sell 8000 units per month. If for every P1.00 increase in selling price, 80 units less will be sold out per month. If the production cost is P100 per unit, find the price per unit for maximum profit per month. a. P150 b. P250 c. P175 d. P225Leon's bought chairs for $180 less 30% and 20%. The store's overhead is 40% of the selling price and the net profit is 30% of the selling price. (a) What is the regular selling price of the chairs? (b) At what price can the chairs be put on sale so that the store breaks-even?
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- Long Range Company provides computer repairs. Long Range charges $35/hour for repair work. Variable costs are $21/hour and fixed costs are $78,000. Next year, Long Range expects to charge out 12,000 hours of computer repair work. What is the break-even point in sales dollars? $420,000 O $195,000 $252,000 $342,000 O $130,000: A newsvendor purchases units for $10 and sells each one for $18. Inventoryis salvaged for $6. He orders 45,000 units and expected sales are 35,000. What is hisexpected profit?A6) Finance XYZ is a retailer and sells 179,000 units per year. It purchases from a single supplier. Fixed costs per order are $868 and carrying cost is $11 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity? Enter your answer rounded off to two decimal points. Margin for error: +/- 1