Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income?
A. $245,000
B. $170,000
C. $207,500
D. $39,200
E. $37,300
Answer: A
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On April 1, 2015, Miller Company paid $6,280 for a two-year insurance policy. On that date, Miller recorded the purchase by debiting Prepaid Insurance and crediting Cash. The correct December 31, 2015, adjusting entry would be
A) Prepaid Insurance 3,140Insurance Expense 3,140 B) Insurance Expense 2,355Prepaid Insurance 2,355 C) Prepaid Insurance 2,355Insurance Expense 2,355 D) Insurance Expense 3,925Prepaid Insurance 3,925
AVCO used a famous registered trademark of BNC, Inc in a manner that reduced its value. This is a violation of the
a. Federal Fair Use Act. b. Federal Trademark Dilution Act. c. Federal Trade Protection Act. d. Cleveland/Myer Act.
At year-end, Marshall Enterprise's Factory Overhead account has a credit balance of $5,000, which is not a material amount. What entry should Marshall make at year-end?
A. Debit Factory Overhead $5,000; credit Finished Goods Inventory $5,000. B. Debit Factory Overhead $5,000; credit Cost of Goods Sold $5,000. C. Debit Factory Overhead $5,000; credit Work in Process Inventory $5,000. D. Debit Cost of Goods Sold $5,000; credit Factory Overhead $5,000. E. No entry is needed.
A clothing retailer would use an island ad to
A. make a newspaper accountable for the sales generated by the ad. B. reduce overall costs of newspaper advertising. C. create high reproduction quality ads. D. break through the clutter typically found in newspapers. E. identify potential target markets.