The Doughboys Pizza Company Sells Pizzas in Two Different Sizes-Medium

question 47

True/False

The Doughboys Pizza Company sells pizzas in two different sizes-medium and large.The two products sell in equal numbers.The contribution margin of a medium pizza is $16,and the contribution margin of a large pizza is $18.The weighted average contribution margin is $17.

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Definitions:

Normal Credit Balance

The expected positive balance of certain types of accounts in the double-entry bookkeeping system, such as liabilities, revenues, and equity accounts.

Sales Tax Payable

A liability account in the general ledger that accumulates the amount of sales tax collected from customers on behalf of local or state tax authorities, to be remitted in the future.

Estimated Returns Inventory

A reserve account used by companies to account for anticipated returns of sold goods, affecting the overall sales and inventory levels.

FOB Destination

A shipping term indicating that the seller is responsible for the goods and the shipping cost until the goods reach the buyer's specified location.