When a T account has several items on both sides, the balance of ...

[brutforce]

When a T account has several items on both sides, the balance of the account is written
 a. on the side with the greatest number of items.
  b. on the side with the least number of items.
  c. on the side with the larger total.
  d. on the side with the smaller total.
  e. in none of these locations.

Question 2

Gross margin and contribution margin.
 
  The Museum of America is preparing for its annual appreciation dinner for contributing members. Last year, 525 members attended the dinner. Tickets for the dinner were 24 per attendee. The profit report for last year's dinner follows.
 
  Ticket sales 12,600
  Cost of dinner 15,300
  Gross margin (2,700)
  Invitations and paperwork 2,500
  Profit (loss) (5,200)
 
  This year the dinner committee does not want to lose money on the dinner. To help achieve its goal, the committee analyzed last year's costs. Of the 15,300 cost of the dinner, 9,000 were fixed costs and 6,300 were variable costs. Of the 2,500 cost of invitations and paperwork, 1,975 were fixed and 525 were variable.
 
  Required:
  1. Prepare last year's profit report using the contribution margin format.
  2. The committee is considering expanding this year's dinner invitation list to include volunteer members (in addition to contributing members). If the committee expands the dinner invitation list, it expects attendance to double. Calculate the effect this will have on the profitability of the dinner assuming fixed costs will be the same as last year.

[duke02]

Answer to Question 1

C

Answer to Question 2

1. Ticket sales (24 525 attendees) 12,600
Variable cost of dinner (12a 525 attendees) 6,300
Variable invitations and paperwork (1b 525) 525 6,825
Contribution margin 5,775
Fixed cost of dinner 9,000
Fixed cost of invitations and paperwork 1,975 10,975
Operating profit (loss)  (5,200)

a 6,300/525 attendees = 12/attendee
b 525/525 attendees = 1/attendee

2. Ticket sales (24 1,050 attendees) 25,200
Variable cost of dinner (12 1,050 attendees) 12,600
Variable invitations and paperwork (1 1,050) 1,050 13,650
Contribution margin 11,550
Fixed cost of dinner 9,000
Fixed cost of invitations and paperwork 1,975 10,975
Operating profit (loss)  575

[brutforce]

Thank you

[duke02]

No problemo