Based on the following data for the current year, what is the accounts receivable turnover? Net sales on account during year Cost of merchandise sold during year $500,000 300,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year Inventory, beginning of year Inventory, end of year a. 12.5 b. 11.1 c. 10.0 d. 14.3 35,000 90,000 110,000 Todrick Company is a merchandiser that reported the following information based on 1,000 units sold. Calculate the contribution margin per unit. Sales $420,000 Beginning merchandise inventory $28,000 Purchases $280,000 Ending merchandise inventory $14,000 Fixed selling expense $? Fixed administrative expense $16,800 Variable selling expense $21,000 Variable administrative expense $? Contribution margin Net operating income $84,000 $25,200 The following data are available for the Northern Division of Comet Products and the single product it makes: Unit selling price $60 Variable cost per unit $36 Annual fixed costs $840,000 Average operating assets $4,500,000 How many units must the Northern Division sell each year to have an ROI of 16%?
Based on the following data for the current year, what is the accounts receivable turnover? Net sales on account during year Cost of merchandise sold during year $500,000 300,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year Inventory, beginning of year Inventory, end of year a. 12.5 b. 11.1 c. 10.0 d. 14.3 35,000 90,000 110,000 Todrick Company is a merchandiser that reported the following information based on 1,000 units sold. Calculate the contribution margin per unit. Sales $420,000 Beginning merchandise inventory $28,000 Purchases $280,000 Ending merchandise inventory $14,000 Fixed selling expense $? Fixed administrative expense $16,800 Variable selling expense $21,000 Variable administrative expense $? Contribution margin Net operating income $84,000 $25,200 The following data are available for the Northern Division of Comet Products and the single product it makes: Unit selling price $60 Variable cost per unit $36 Annual fixed costs $840,000 Average operating assets $4,500,000 How many units must the Northern Division sell each year to have an ROI of 16%?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Based on the following data for the current year, what is the accounts receivable turnover?
Net sales on account during year
Cost of merchandise sold during year
$500,000
300,000
Accounts receivable, beginning of year 45,000
Accounts receivable, end of year
Inventory, beginning of year
Inventory, end of year
a. 12.5
b. 11.1
c. 10.0
d. 14.3
35,000
90,000
110,000
Todrick Company is a merchandiser that reported the following information based on
1,000 units sold. Calculate the contribution margin per unit.
Sales
$420,000
Beginning merchandise inventory $28,000
Purchases
$280,000
Ending merchandise inventory
$14,000
Fixed selling expense
$?
Fixed administrative expense
$16,800
Variable selling expense
$21,000
Variable administrative expense
$?
Contribution margin
Net operating income
$84,000
$25,200
The following data are available for the Northern Division of Comet Products and the
single product it makes:
Unit selling price
$60
Variable cost per unit
$36
Annual fixed costs
$840,000
Average operating assets
$4,500,000
How many units must the Northern Division sell each year to have an ROI of 16%?
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