PLEASE help me with this problem! I\'ve posted this question before and every so
ID: 2716411 • Letter: P
Question
PLEASE help me with this problem! I've posted this question before and every solution I've been given is incorrect. Everything with a red x is incorrect and I really need the correct answers to the problem in order to move on. This problem is really frustrating me because I've tried so many different formulas and cannot for the life of me figure out the problem answers! The options for the "Click to Select" are on the right side of the second image. If you can't see the pictures (first image is of the preliminary info, second is of the problem), I've uploaded the images to Imgur here:
http://imgur.com/a/Do8j9
Everything that is in the correct spot (with a green checkmark), please leave them in the cells they are in because each of the "Click to Select" options on the left-hand side is slightly different per cell.
Explanation / Answer
Answer for question no.1:
employment taxes is the be calculated as 11%(Sales salaries+Delivery salaries+store management salaries+general management salaries)
The two options that were selected wrongly are Direct advertising should be selected instead of general advertiing, becauese general advertising is an allocation, but direct advertsing is directly related to that particular store and it can be avioded if the store is closed and at the amount where $8,000 is correct, Delivry salaries should be selected.
Answer for question no.3 a)
Increase in sales =$500,000
Increase in gross margin = 45% of $500,000 =$225,000.---------------(A)
In case the store is closed then the net income lost =$11,180.----------(B)
Net advantage =A-B =$213,820.
Gross margin lost if the store is closed $242,000.00 Direct advertising $40,000.00 Sales salaries $43,000.00 Delivery salaries $8,000.00 Store rent $62,000.00 Store management salaries $21,000.00 Utilities $32,000.00 Insurance on fixtures and inventories $5,800.00 employment taxes $9,020.00 General management salaries $10,000.00 Total expenses that can be avoided $230,820.00 $230,820.00 Decrease in companies net operating income $11,180.00Related Questions
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