Explore BrainMass

Explore BrainMass

    Business accounting questions analysis

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The following information relates to a business for a period.
    Selling price per unit: 100; Variable costs per unit: 60; Total fixed costs: 90,000; Net profit: 15,000. How many units were sold in the period?

    (Please see attachment for full question)

    © BrainMass Inc. brainmass.com June 3, 2020, 4:56 pm ad1c9bdddf
    https://brainmass.com/business/finance/business-accounting-questions-analysis-8599

    Attachments

    Solution Preview

    2
    I The following information relates to a business for a period.
    $
    selling price per unit
    100 ($100 - $60)X - $90,000 = $15,000
    variable costs per unit
    60 Where X equals the number sold.
    total fixed costs
    90 000 You can plug in the 4 answers to find which one is right.
    net profit
    15 000
    How many units were sold in the period?
    A 1500 B 1750 C 2250 D 2625
    2 A customer paid a deposit in advance for goods to be supplied at a later date. How should this be recorded in the seller's books?
    Debit Credit
    A Cash Customer
    B Cash Sales
    C Customer Prepayment
    D Customer Sales

    I would answer D because you would debit (increase) the customers account and credit (reduce) sales.
    Once the product is shipped, you would do the opposite and thereby increase sales.

    3 A trial balance at 30 April 2003, before making end of year adjustments, showed:
    debit Credit

    Trade debtors $17,800
    Provision for doubtful debts $580
    200
    Provision of 2% of trade debtors $360
    - ($800) $940 Total Answer is C

    At 30 April 2003 it was decided to write off a bad debt of $800 and to make a provision for
    doubtful debts of ...

    Solution Summary

    Accounting, business analysis and finance is examined for variable costs per unit. A sales ledger control accounts are examined.

    $2.19

    ADVERTISEMENT