Purchases on Account Are Given Below 55% of the Month's Purchases Will Be Paid in the |

question 75

Multiple Choice

Purchases on account are given below: $$\begin{array} { | r | r | r | } \hline \text { October } & \text { November } & \text { December } \\\hline 30,000 & 40,000 & 50,000 \\\hline\end{array}$$ 55% of the month's purchases will be paid in the month of the purchase; the remaining 45% will be paid in the following month.
The accounts payable balance at the beginning of the year was $85,000. The company purchased $380,000 worth of goods on account, and the ending balance of the payables account was $70,000.
What were the total payments on account?

• A) $450,000
• B) $395,000
• C) $535,000
• D) $465,000

Interpret the impact of sales volume changes on net operating income using operating leverage.

Analyze the effect of sales mix changes on the break-even point.

Calculate the unit contribution margin and its importance in decision-making.

Compute and understand the contribution margin ratio for decision-making.

---

Definitions:

Marketing Plan

A detailed strategy for identifying target markets and how to reach them, outlining marketing objectives, tactics, and measures of success.

Harley-Davidson

A motorcycle company in the United States famed for producing heavy bikes intended for long-distance riding on highways.

SWOT Analysis

An analytical framework that evaluates an entity's strengths, weaknesses, opportunities, and threats to support strategic planning.

Repositioning

The strategic process of changing the perceived image, identity, or position of a brand or product in the consumers' minds.