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2 years ago

Match each value with its type.

Business

2 answers:

lozanna [386]2 years ago

7 0

Answer:

The following are the values with their correct matches

Pays medical bills - Liability coverage.

Pays damages to your car - Collision coverage.

Pays damages to the other car - Pays 0% damages to the other car.

Explanation:

Medical expenses are termed as a liability coverage because they certainly cannot be ignored as one cannot choose to risk his health.
The payment done for the repairing of a car damaged due to collision is termed as collision coverage.

One would choose to not spend on the repairing of the other car when one car is in good condition.

Ahat [919]2 years ago

5 0

Answer:

Liability Coverage: pays medical bills, pays damages to the other car

Collision Coverage: pays damages to your car, pays 0% damages to the other car

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Answer:

it is 12.8%

Explanation:

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2 years ago

The amount by which federal spending exceeds revenue in a given year is known as ap gov multiple choice

Savatey [412]

The amount by which federal spending exceeds revenue in a given year is known as budget deficit. Having a budget deficit means that the government spent more money than they made in a current year. When this happens the government owes money to others because they had to borrow from accounts to pay off debt.

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2 years ago

False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account. Sales and cash coll

gayaneshka [121]

Answer:

$607,000

Explanation:

False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account.

Sales and cash collections from customers during the year were $650,000 and $610,000, respectively.

False Value estimates that 6% of all sales will be returned.

During 2016, customers returned merchandise for credit of $28,000 to their accounts.

False Value's 2016 income statement would report net sales of:

The closing balance in the allowance for sales returns account will be: 32,000 opening balance + 6% 0f 650,000 - sales returns within the year of 28,000 = $43,000

Hence Net Sales will be 650,000 - 43,000 = $607,000

5 0

2 years ago

Riverbed Company sells goods that cost $320,000 to Ricard Company for $407,000 on January 2, 2020. The sales price includes an i

Alecsey [184]

Answer:

a) Journal entries to record the sale on January 2, 2020:

Debit Accounts Receivable with $407,000

Credit Sales Account with $368,500

Credit Deferred Revenue (Installation Fee) with $38,500

Being sales of goods and installation services.

b) Income Statement for 1st Quarter of 2020

Sales - $368,500

Installation Fee - $19,250

Total Income - $387,750

less cost of sales - $320,000

Net Income - $67,750

c) The revenue Shaw should recognize in relation to the sale to Ricard is $387,750 (goods and accrued installation fee). The installation fee to be recognized is for 3 months only.

Explanation:

The installation fee is for 6 months. Therefore, 3 months' worth of fee will be recognized in the income statement ending on March 31, 2020.

7 0

2 years ago

EB5.

rusak2 [61]

Answer:

1. Break-even in units is 6,000 units

2. Break-even in dollars is $720,000

3. Contribution Income Statement for 10,000 units

Sales revenue (10,000 x 120) $1,200,000

Variable cost (10,000 x 90) (900,000)

Contribution margin $300,000

Fixed cost (180,000)

Profit $120,000

4. Units to sell is 16,000

5. Dollars sale is $1,920,000

6. Contribution Income Statement for $2,400,000 sales revenue

Sales revenue (20,000 x 120) $2,400,000

Variable cost (120,000 x 90) (1,800,000)

Contribution margin $600,000

Fixed cost (180,000)

Profit $420,000

Explanation:

1. To compute the Break-even point in units,

Formula is BEP = total fixed cost / unit contribution margin

Step 1. Compute the unit contribution margin

Unit selling price $120

Less : variable cost 90

Unit contribution margin $30

Step 2. compute the unit break-even in units using the formula.

BEP = total fixed cost / unit contribution margin

BEP = $180,000 / 30

BEP = 6,000 units

2. To compute the Break-even point in dollars,

Formula is BES = total fixed cost / contribution margin ratio

Step 1. Compute the contribution margin ratio

Unit selling price $120

Less : variable cost 90

Unit contribution margin $30

So, $30 divided by $120 equals 25% (CMR)

Step 2. compute the unit break-even in dollars using the formula.

BEP = total fixed cost / contribution margin ratio

BEP = $180,000 / 25%

BEP = $720,000

3. To prepare the contribution margin income statement, we will multiply the units sold of 10,000 units by $120 to get the sales revenue. Then multiply 10,000 units by $90 to get the variable cost. Further illustration below;

Sales revenue (10,000 x 120) $1,200,000

Variable cost (10,000 x 90) (900,000)

Contribution margin $300,000

Fixed cost (180,000)

Profit $120,000

4. To compute the units to sell to realize the target profit we will use the formula:

(Total fixed cost + Target profit )/ unit contribution margin

Step 1. Compute the unit contribution margin

Unit selling price $120

Less : variable cost 90

Unit contribution margin $30

Step 2. compute the units to sell using the formula.

(Total fixed cost + target profit) / unit contribution margin

($180,000 + $300,000) / 30

Answer is 16,000 units

5. To compute the sales in dollars to realize the target profit of $300,000,

Formula is (Total fixed cost + target profit) / contribution margin ratio

Step 1. Compute the contribution margin ratio

Unit selling price $120

Less : variable cost 90

Unit contribution margin $30

So, $30 divided by $120 equals 25% (CMR)

Step 2. compute the target sales in dollars using the formula.

(Total fixed cost + target profit) / contribution margin ratio

($180,000 + $300,000) / 25%

$480,000 / 25%

Answer is $1,920,000

6. Contribution Income Statement for $2,400,000 sales revenue. FIRST we must determine how many unit are sold to have that sales revenue. $2,400,000 sales revenue divided by unit selling price equals 20,000 units. To further illustrate, see presentation below.

$2,400,000 / $120 = 20,000 units

Sales revenue (20,000 x 120) $2,400,000

Variable cost (120,000 x 90) (1,800,000)

Contribution margin $600,000

Fixed cost (180,000)

Profit $420,000

4 0

2 years ago