Which of these is an example of delayed purchasing?

Answer:

The question requires that we prepare a contribution margin report based on  the format provided in the full question which is attached herewith:

Explanation:

                              Contribution Margin Report by Product

                                                                 Mountain Monster     Desert Dragon

Revenue(4900*$5000)(4750*$5275)    $24,500,000          $25,056,250

Variable cost of goods sold

($3275*4900)($3500*4750)                   ($16,047,500)          ($16,625,000)

Manufacturing margin

($1725*4900)($1775*4750)                      $8,452,500           $8,431,250  

Variable selling expenses

(225*4900)(825*4750)                            ($1,102,500)           ($3,918,750)

Contribution margin

(1500*4900)(950*4750)                           $7,350,000              $4,512,500

Contribution margin ratio                            30.00%                          18.01%

(contribution/sales)

$7350,000/$24,500,000*100=30%

   $4,512,500/ $25,056,250=18%

Answer:

Substantial performance

Explanation:                                      

the given statement is the case of Substantial performance

Substantial performance is the performance of the company which incomplete but it does not defeat the purpose of the contract.

here, in the statement  Raul take contract of building the home for Evelyn but he missed some specification which cause Evelyn  $25,000 to fix the damage as the project is incomplete but the purpose is not defeated hence this is an example of Substantial performance.

Answer:                        

Explanation:

1.                                     Jasper Company

                                      Income Statement

            Sales (280000 x $12)                                  $3360000

            <u>Less: Cost of goods sold</u>

            Add: Direct Material                   $180000

            Add: Direct Labor                       $505000

            Add: Manufacturing Overhead  <u>$110000</u>

            Cost of goods sold                                      <u>($795000)</u>

            Gross Profit                                                  $ 2565000

           <u>Less: Expenses</u>

           Selling expense                           $437000

           Administrative expense              <u>$854000</u>

          Total expenses                                               <u>($1291000)</u>

          Net income                                                     <u> $1274000</u>

Percentage of sales for each line item

Sales = 100%

Cost of goods sold: x 100= 23.7%

Selling expense : x 100 = 13%

Administrative expense: x 100 = 25.4 %

2. According to the income statement in requirement 1, the manager can control cost by outsourcing the product if it is cheaper to get it from a third party in order to cut/control cost of goods sold.

Manager can also try controlling the administrative expenses as they are taking a bigger proportion than any other cost/ expense.