Suppose you are the manager of a theatre company. You have identified two groups of customers. Group 1 has a demand given by Q 1 = 100 - P and Group 2 has a demand given by Q 2 = 120 -3P. You are currently charging the same price - 40 euros - to both groups. To maximize revenue, you should charge a price of

(a) 12.50 euros to group 1 and 20 euros to group 2

(b) 50 euros to group 1 and 20 euros to group 2

(c) 30 euros to group 1 and 20 euros to group 2

(d) 25 euros to group 1 and 60 euros to group 2

InternationalClothiersLtd.hasofficesinCanada,Bermuda,EuropeandtheUnitedStates. Eachofthe following events have occurred after the company’s 31 December 2019 year-end, but before their financial statements had been finalized:

1. On January 25, International Clothiers Ltd entered into a long-term lease for a private airplane for the company president and CEO. The lease requires payments of US$75,000 per month for 60 months.

2. One of the company’s major retail customers declared bankruptcy on March 22. The retail customer accounted for 20% of International Clothier’s year-end receivables and 35% of International Clothier’s revenue in 2019.

Required:

Identify and explain the appropriate accounting treatment for the subsequent events described above.

For each of the situations described below, select the type of analytics that would address the specific organizational need and justify your selection.

b. A large retail chain wants to understand what factors contributed to the overall sales decline it experienced in a specific month in the past.

c. To support staffing analysis for a holiday season, a clothing store wants to improve its understanding of the number of customers that are likely to visit each of its stores during the November 15–January 15 time frame.

d. A gaming company wants to provide all of its employees an up-to-date graphical representation of the number of downloads of its game products and in-app revenue associated with them.

please comment on post

The major advantage of extending credit sales is that it will increase sales revenue. This is because customers who can't produce cash today are still able to buy the good or service of their choice.

Extending credit sales is usually a good idea for businesses, but there are a few important factors to consider. First, the business needs sufficient cash flow to account for Cost of Goods Sold (inventory). Customers' payments may delayed, but suppliers still have to get paid on time. Thus, the business has to be keenly aware of its cash levels.

This is especially true for businesses that sell large durable goods at low volumes, like airplane engines. If a customer is unable to pay its debt, this bad debt may have a big affect on cash levels available for suppliers and investment in other activities.

The most important factor to consider when deciding whether to offer credit sales is the anticipated bad debt expense. This is the percentage of credit sales that are not ultimately paid. The business will be forced to eventually write this off against the account receivables balance (credit). This may lead to a lower credit rating. A smaller account receivable balance, which is considered liquid, is not good if you wish to borrow against that balance (secured borrowing).

Ultimately, a business has to decide whether 1) the increase in sales revenue will be greater than the bad debt expense arising from extending credit to customers; and 2) whether the increase in sales revenue is sufficient to account for reduced and/or delayed cash flows.

It therefore goes without saying that the credit worthiness of customers should be evaluated before deciding to lend. Background checks and credit scores should be reviewed. The goal of course to minimize any future bad debt expense.

On October 1, 2018, Pipes & Plumbing Company received a 10 percent, six - month note receivable from Kirkman Constructions, one of Pipes & Plumbing Company’s problem credit customers. Kirkman had owed $75,000 on an account receivable that had defaulted. Pipes & Plumbing insists that any customer who fails to pay an account receivable when due must replace their unpaid account receivable with an interest - bearing note receivable. Assume the Pipes & Plumbing Company makes adjusting entrie s for accrued interest revenue once a year on December 31.

Journalize the following events on the books of Pipes & Plumbing Company:

1. Record the receipt of the note on October 1 in settl eme nt of the account receivable

2. Record accrued interest at December 31, 2018.

3. Assume that Kirkman Constructions pays the note plus accrued interest in ful l. Record the collection of the principal and interest on April 1, 2019.

4. Assume that Kirkman Constructions did not make the necessary principal and i nterest payment on April 1, 2019, defaulting on his obligation. Record the default on April 1, 2019.

5. Why does Pipes & Plumbing Company insist that any customer who fails to pay must replace their unpaid account receivable with an in terest - bearing note receivable?

Develop detail business outline for food preservation company.

I. Summarize your business concept, define your company, how you will generate revenue and profit. Describe your product/service, what distinguishes your company from others and how much money you will need from financers. II. Explain your mission, objectives, purpose and what you want to accomplish. III. What industry are you and type of structure. IV. Describe your product/service. V. Provide data about your target market and goals. VI. Summarize qualifications of management personnel. VII. Outline strategy for identifying and contacting customers, providing customer services, setting prices, advertisement. VIII. Describe how product will be developed, costs and problems. IX. Provide an example of your operating plan. Identify operating facilities needed, equipment and personnel requirements. X. Need a schedule for company growth, development, staffing and when products will be ready for the market. XI. What risks and problems do you foresee with your business? XII. Outline the details of your budget: projections of income, expenses, costs for start-up, operations, in a 3-5 years cash flow analysis. XIII. What kind of exit strategy will you provide for investors to buy back their investment? Reference: Thill and Bovee, 14th Edition, p 343.

Big 4 Sporting Goods sold $1,000,000 of products in March 2019 to retail customers in San Diego. San Diego imposes an 8.0% sales tax. Customers returned $50,000 of items during March 2019. Big 4 paid the sales tax due for March on April 5. Show the entries in the T accounts below (ignore the allowance method of accounting for sales returns.) Cash Sales Revenue Sales Tax Payable Sales Tax Expense Sales Returns Accounts Receivable

1. Big 4 Sporting Goods sold $1,000,000 of products in March 2019 to retail customers in San Diego. San Diego imposes an 8.0% sales tax. Customers returned $50,000 of items during March 2019.   Big 4 paid the sales tax due for March on April 5. Show the entries in the T accounts below (ignore the allowance method of accounting for sales returns.)

Kaleta Company reports the following for the month of June.

Assume a sale of 730 units occurred on June 15 for a selling price of $10 and a sale of 598 units on June 27 for $11.

Calculate cost of goods available for sale.  

Calculate Moving-Average unit cost for June 1, 12, 15, 23 & 27. (Round answers to 3 decimal places, e.g. 2.525.)

Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 730 units occurred on June 15 for a selling price of $10 and a sale of 598 units on June 27 for $11. (Round answers to 0 decimal places, e.g. 1,250.)

Kaleta Company reports the following for the month of June.

Assume a sale of 730 units occurred on June 15 for a selling price of $10 and a sale of 598 units on June 27 for $11.

Calculate cost of goods available for sale.  

Calculate Moving-Average unit cost for June 1, 12, 15, 23 & 27. (Round answers to 3 decimal places, e.g. 2.525.)

Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 730 units occurred on June 15 for a selling price of $10 and a sale of 598 units on June 27 for $11. (Round answers to 0 decimal places, e.g. 1,250.)