Delongis Corporation, a merchandising company, reported the following results for June: Number of units sold 1,200unitsSelling price per unit$221per unitUnit cost of goods sold$97per unitVariable selling expense per unit$12per unitTotal fixed selling expense$7,300 Variable administrative expense per unit$8per unitTotal fixed administrative expense$15,300 Cost of goods sold is a variable cost in this company.The gross margin for June is:
A. $124,800
B. $102,200
C. $148,800
D. $242,600
Answer: C
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The LIFO conformity rule requires that if a company uses LIFO in reporting income to stockholders, it also must use LIFO on its tax return
a. True b. False Indicate whether the statement is true or false
Exhibit 15-2 Lawrence, Inc, entered into a subscription contract with several subscribers that calls for the purchase of 2,000 shares of $5 par common stock for $15 a share. The contract calls for a 20% down payment and specifies that any amounts not paid within the contract period will be forfeited in full. ? Refer to Exhibit 15-2. Lawrence received final payment (80%) on 1,800 shares and
issued those shares. Subscribers defaulted on 200 shares. The entries to record receipt of final payment and issuance of 1,800 shares would include a A) debit to Cash for $24,000. B) credit to Subscriptions Receivable: Common Stock for $24,000. C) debit to Common Stock Subscribed for $10,000. D) credit to Common Stock for $9,000.
By using ________, a company deliberately sets a low price with the intention of driving its competition out of business
A) price-fixing B) price lining C) surge pricing D) predatory pricing E) loss leader pricing
In which of the following situations would personal selling be the LEAST cost-effective choice?
A) a manufacturer selling a line of running shoes to a chain of department stores B) an automobile dealer selling luxury cars C) a real estate agent selling a home D) a chain of supermarkets selling convenience products E) a computer systems firm selling hardware and software to a large business