Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers.Number of ordersUnits per orderSales returns:Number of returnsTotal units returnedNumber of sales callsJerry,Incorporated6KateCompany381,000420450131485Colleen sells its products at $290 per unit. The firm's gross margin ratio is 20%. Both Jerry and Kate pay their accounts promptly andno accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30months, the firm has determined the following activity costs:ActivitySales callsOrder processingDeliveriesSales returnsSales salaryRequired:Cost Driver and Rate$800 per visit180 per order410 per order270 per return and $3 per unit returned107,000 per month1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the totalcost for Colleen Company to service Jerry, Incorporated and Kate Company.2. Compare the profitability of these two customers.Complete this question by entering your answers in the tabs below.Required 1 Required 2Compare the profitability of these two customers. (Loss amounts should be indicated by a minus sign. Round operatingmargin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%).)Net salesOperating income (loss)Operating margin (loss)Jerry,IncorporatedKate Company

Operating Income -An accounting indicator known as operating income, or income from operations,…

Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Jerry, Incorporated 6 Kate Company 38 1,000 420 4 50 13 140 5 Colleen sells its products at $290 per unit. The firm's gross margin ratio is 20%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Sales calls Order processing Deliveries Sales returns Sales Cost Driver and Rate $800 per visit 180 per order 410 per order 270 per return and $3 per unit returned

Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Jerry, Incorporated 6 Kate Company 38 1,000 420 4 50 13 140 5 Colleen sells its products at $290 per unit. The firm's gross margin ratio is 20%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Sales calls Order processing Deliveries Sales returns Sales Cost Driver and Rate $800 per visit 180 per order 410 per order 270 per return and $3 per unit returned

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Jerry, Incorporated Kate Company Number of orders 4 50 Units per order 3,000 160 Sales returns: Number of returns 2 5 Total units returned 40 120 Number of sales calls 14 3 Colleen sells its products at $280 per unit. The firm’s gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Cost Driver and Rate Sales calls $600 per visit Order processing 240 per order Deliveries 480 per order Sales returns 270 per return and $6 per unit returned Sales salary 94,000 per month Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level,…
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Juniper Design, provides design services to residential developers. Last year, the company had net operating income of $420,000 on sales of $2,100,000. The company's average operating assets were $2,300,000 and its minimum required rate of return was 15%. Provide the missing data in the following table for a distributor of martial arts products: Note: Enter "Turnover" and "ROI" answers to 1 decimal place. Sales Net operating income Average operating assets Margin Turnover Return on investment (ROI) Alpha $ 364,000 8% 5.0 % Division Bravo $ 325,000 $52,000 % 40.0 % Charlie $66,900 15 % 30.0 %
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Restaurants do a large volume of business by credit and debit cards. Suppose Chocolate Passion restaurant had these transactions on January 28: View the transactions. Read the requirements. ☑ Requirement 1. Suppose Chocolate Passion's processor charges a 6% fee and deposits sales net of the fee. Journalize these sale transactions for the restaurant. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journalize the credit sales net of the fee, first. Date Accounts and Explanation Transactions Debit Credit National Express credit card sales $ 10,700 ValueCard debit card sales 8,000 Print Done ☑ Requirements - Suppose Chocolate Passion's processor charges a 6% fee and deposits sales net of the fee. Journalize these sales transactions for the restaurant. 2. Suppose Chocolate Passion's processor charges a 6% fee and deposits sales using the gross method. Assume that on January 28, the company pays the fees assessed by the credit card…
Joey's Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During Year 1, its first year of operations, Joey's Bike Shop experienced the following. Sales on account Cash sales Collections of accounts receivable Uncollectible accounts charged off during the year $288,300 696,700 273,885 1,413 Required a. Assume that Joey's Bike Shop uses the allowance method of accounting for uncollectible accounts and estimates that 1 percent of its sales on account will not be collected. Answer the following questions: (1) What is the Accounts Receivable balance at December 31, Year 1? (2) What is the ending balance of the Allowance for Doubtful Accounts at December 31, Year 1, after all entries and adjusting entries are posted? (3) What is the amount of uncollectible accounts expense for Year 1? (4) What is the net realizable value of accounts receivable at December 31, Year 1?
ABC is an online-to-offline platform that sells e-commerce products to offline customers through a network of agents. ABC gives a commission to agents for each sale made. ABC has 4 main product categories: electronics, fashion, supermarket, and others. Please refer to the exhibits for data sets pertaining to the questions below. Today is May 16th. 1. What is the average growth in average sales per agent per month from March to May target? Answer: %2. Which one is the category with the highest and lowest average month-on- month sales growth from March to May target? Answer: Highest: Lowest:3. Today is May We have got the interim result of the sales figures in the first half of May. Typically, the first half of the month constitutes of 40% of sales. Using this assumption, will we reach our May target? What % over the target will we over/under-deliver? Answer: under/over-deliver by % of target4. Using that assumption, which category (or categories) will not reach the targeted sales…
Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Jerry, Incorporated Kate Company 6 30 1,000 420 4 5 50 13 140 5 Colleen sells its products at $290 per unit. The firm's gross margin ratio is 20%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Sales calls Cost Driver and Rate $800 per visit Order processing Deliveries Sales returns Sales salary Required: 180 per order 410 per order 270 per return and $3 per unit returned 107,000 per month 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company…