Financial Accounting Take Home Help
Chapter 6 – Questions
- SportZ Ltd. has offered a series of discounts to their retail outlets. The basic wholesale discount is 30% off the suggested retail price. If the retailer purchases more than $5,000from SportZ, a further 20% discount is applied. As an introductory offer on the new mask, if two masks are ordered, a further 5% discount is given for the total order. Lethbridge Sports has placed an order for $9,800, at the suggested retail price. How much will Lethbridge Sports have to pay for the order?
- SportZ has received an invoice from one of its suppliers, dated April 2, for $30,120, terms 2/10. All or part of the amount owing will be paid on April 10.
- How much would have to be paid to fully pay the invoice?
- How much would have to be paid to reduce the debt by $20,000?
- A specific type of leather is needed to make gloves for a hockey player. The leather for each glove costs $12.00. To cut and style the leather, expenses of 45% of cost are incurred. The company targets a profit of 60% of cost.
- What is the targeted selling price for the leather glove? Financial Accounting Take Home Help
- What is the resulting markup based on cost?
- If the profit was reduced to 50% of cost, how much would be the sale price?
- SportZ sponsors an evening session of skating at the local arena. A family pass is offered, whereby a parent and up to two children are admitted for $12. Free hot chocolate is provided to those with the family pass. The rental of the arena for each of these sessions costs $1,000. Hot chocolate costs $0.50 per person. Estimated capacity for the skating rink is 500 people.
- If only family passes are sold, and each includes a parent and two children, how many family passes must be sold to break even? Financial Accounting Take Home Help
- At break-even, what would be the total revenue?
- At break-even, what percent of capacity would result?
- Along with the development of the new helmet for ice hockey, SportZ is also making changes to the street hockey helmets it offers. For one of the most popular models, the cost of the moulds is $49,920 and the selling price would be $39.99. On the basis of sales forecasts, the company estimates that it needs to sell 1,600 units to break even.
- What is the maximum variable cost that can be spent to make each helmet, and still break even?
- If the variable cost per unit changes, and the contribution rate is 85%, how many units need to be sold to break even?
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