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Task
Separate the fixed and variable elements of total costs using a suitable method in a given situation.
The following information concerning sales revenues and website hits of Cool Blue company for the last four years have been as follows:
Years
sales Revenue($)
Website hits (units)
2011
110,000
70,000
2012
115,000
80,000
2013
111,000
77,000
2014
97,000
60,000
Variable cost per unit and total fixed cost is constant within this range of activity.
1. Using the above identify suitable method to separate the fixed and variable elements of total costs and explain it.
2. Using the identified method calculate the revenue that should be expected in year 2015 when hits is expected to be 75,000 units.
Classifying events as asset source - Receive cash from customers for services rendered
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Explain how the merchandise will be treated on any of the financial statements at year-end. In which year will revenue from the sale be recorded?
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Write a memorandum to the CFO describing how this might affect the inventory observation.Please do not make this more than one-page in length.
qalpaca corporation had revenues of 300000 in its first year of operations. the company has not collected on 19900 of
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