Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

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On December 31, 2018, Blackpink Company, a financing institution lent ₱15,000,000 to YG Corp. due 3 years after. The loan is supported by an 12% note receivable. Based on the company’s initial estimates the present value of the 12 months expected credit loss (ECL) discounted at 10% is at 2,000,000. The probability of default (PD) is at 7%. Blackpink Company was able to collect interest as it became due at the end of 2019. There was no evidence of significant increase in credit risk by the end 2019 and that the receivable is determined to have “low credit risk”. There were no changes in its initial estimate of the 12 months expected credit loss either. By the end of 2020, Blackpink Company was able to collect interest as it became due. Based on available forward-looking information (determinable without undue cost or effort), however, there is evidence that there was a significant increase in credit risk by the end of 2020. Blackpink Company therefore had to change its basis…

Answer 1

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Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

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On December 31, 2018, Blackpink Company, a financing institution lent ₱15,000,000 to YG Corp. due 3 years after. The loan is supported by an 12% note receivable. Based on the company’s initial estimates the present value of the 12 months expected credit loss (ECL) discounted at 10% is at 2,000,000. The probability of default (PD) is at 7%. Blackpink Company was able to collect interest as it became due at the end of 2019. There was no evidence of significant increase in credit risk by the end 2019 and that the receivable is determined to have “low credit risk”. There were no changes in its initial estimate of the 12 months expected credit loss either. By the end of 2020, Blackpink Company was able to collect interest as it became due. Based on available forward-looking information (determinable without undue cost or effort), however, there is evidence that there was a significant increase in credit risk by the end of 2020. Blackpink Company therefore had to change its basis…

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Answer 2

Question

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

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Answer 3

Question

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

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Answer 4

Question

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

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Answer 5

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

Answer 6

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

Answer 7

Chapter 6, Problem 4PB

1.

To determine

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

Answer 8

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

Answer 9

2.

To determine

Indicate which salesperson generated the highest contribution margin for the year.

Answer 10

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

Answer 11

3.

To determine

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

Answer 12

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Ch. 6 - What types of costs are customarily included in...Ch. 6 - Which type of manufacturing cost (direct...Ch. 6 - Which of the following costs would be included in...Ch. 6 - In the variable costing income statement, how are...Ch. 6 - Prob. 5DQ Ch. 6 - Discuss how financial data prepared on the basis...Ch. 6 - Prob. 7DQ Ch. 6 - Explain why rewarding sales personnel on the basis...Ch. 6 - Prob. 9DQ Ch. 6 - Prob. 10DQ

Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

Solution Summary: The author explains the contribution margin, variable cost of goods sold, and variable selling expenses for each salesperson.

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Prepare a table that indicates the contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio for each salesperson.

Indicate which salesperson generated the highest contribution margin for the year.

List the factors other than contribution margin that should be considered in evaluating the performance of salesperson.

Chapter 6 Solutions