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DetailsSo, after deducting $10.00 from $20.00, the contribution margin comes out to $10.00. There are two main business factors that impact BPE, these are fixed costs and variable costs. The fixed costs refer to necessary expenses such as rent or mortgage payments, utilities, marketing, research and development, etc. These are essential operational expenses that keep…
DetailsIt is calculated either as a firm’s total assets less its total liabilities or alternatively as the sum of share capital and retained earnings less treasury shares. Stockholders’ equity might include common stock, paid-in capital, retained earnings, and treasury stock. Shareholders’ equity refers to the owners’ claim on the assets of a company after debts…
DetailsConsider including a tracking number so the buyer can track the shipment online. If you need to purchase small business inventory, you can convey what you want by creating a PO. You should make a copy of the PO you create and save it for your records. There are some business expenses that won’t necessarily…
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DetailsFor this reason, buyers record purchase returns and allowances in a separate Purchase Returns and Allowances account. When the seller allows a discount, this is recorded as a reduction of revenues, and is typically a debit to a contra revenue account. For example, the seller allows a $50 discount from the billed price of $1,000…
DetailsThis information can be gleaned from the accounts receivable subsidiary ledger. The ledger will show, for example, that Customer A owes $15,000, Customer B owes $25,000, Customer C owes $5,000, and so on. Subsidiary Ledgers are not overly complicated, but you do need to create and maintain them in a certain appropriate fashion. The accounts…
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