I wanted to know if my answers are correct

PROBLEM I {31 points) The following transactions occurred during the month of November in the operation of Carol's m Cosmetics, inc, a wholesaler who sells to retail stores. Record each transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose. For any entry that impacts Retained Earnings, write a brief description in the column provided. November 4- November 15 November 16 November 26 November 30 Purchased merchandise for $9,000 on account from International Fragrance Corporation, terms: 3/10, n/60. Made cash sales of $300. Sold merchandise to Lam Department Store on account for $4,000, terms 2/ 10, n/30. The merchandise had cost Carol's $1,500. Received full amount due from mnepamnent Store Recorded the shrinkage adjustment. The inventory on hand as determined by taking a physical inventory at the end of November is $7,400. For PROBLEM 1: Carol's Cutsie Cosmetics Transactions Record Shareholder's Assets Liabilities Equity Date Cash Accounts Merchandising Accounts Payable Retained Description to Receivable Inventory Earnings Retained Earnings Nov 4 9,000 9,000 Nov 15 300 300 Sales revenue will increase profit Nov 16 4,000 4,000 Sales revenue will increase profit (1,500) (1,500) Cost of goods sold will decrease profit Nov 26 3,920 (4,000) (80) Sales discount will decrease profit (100) (100) Inventory shrinkage will reduce profit Ending inventory as per record = Purchase - Cost of sales = 9000 - 1500 = $7500 Shrinkage adjustment = Inventory as per record - Inventory on hand = 7500 - 7400 = $100PROBLEM 2 (20 points): The following is taken from the accounting records of the Makeup Hut for the month of April. Use this information to prepare a multiple step income statement for April in the space provided on the next page. Be sure to include only those items that belong on an income statement. Accounts payable $ 21,000 Accounts Receivable 40,000 Advertising Expense 12,000 Capital Stock 90,000 Cash 10,000 Cost of Goods Sold 300,000 interest Expense 1,000 Merchandise Inventory 80,000 Retained Earnings, 4/30/20-- 20,000 Sales [net of discounts and returns) 620,000 Salaries Expense 150,000 For Problem 2: Makeup Hut Income Statement For the month ended April 30, 20-- Less: Cost of goods sold _ (300,000) 000000 Total operating expense _ (162,000) 000000 0000 000000 PROBLEM 3 (33 points) Applehead Technology is a company that purchases a device called the 5mm from a supplier and then sells the devices to retail customers. If the company makes no changes in its operations, the company expects the following for the coming year. # of units sold 30,000 Price $300 per unit Cost of merchandise $100 per unit Rent and Salaries for the year $1,300,000 The company is holding a meeting to discuss ways to increase its prot that is the company's goal. At that meeting, Maria Garcia, the marketing manager, says "If we make the changes 1 suggest, I think we can attract more customers and increase our share of the market Currently, our customers pay for shipping. Market research says customers hate shipping charges, so rather than having customers pay it, we should pay it Shipping would cost us $3 per unit. Market research also shows that our prices are not competitive. So, we should lower our price to $2 70. If we take these actions, 1 estimate we will increase the number of units sold to 32,000.\" a. 0n the spreadsheet provided on the next page labeled \"For Problem 3a\For Problem 3a: Contribution Show your work Make No Show your work for Garcia's Margin Income for Applehead's Changes Proposal Statement Makes No Changes Garcia's Proposal Results Results Sales 30000*300 9,000,000 32000*270 8,640,000 Cost of merchandise 30000*100 3,000,000 32000*100 3,200,000 Shipping charges 3200000*3 96,000 Variable Cost 3,000,000 3,200,000+96,000 3296,000 Contribution Margin 6,000,000 5,344,000 Fixed Cost 1,300,000 1,300,000 Operating Income 6,000,000 - 1.3 M | 4,700,000 5,344,000 - 1.3 M 4,044,000For Problem 3b, c, d, e: B) By analyzing the income from the both options, income if Garcia's proposal will be adopted will be $656,000 (4,700,000 4,044,000) lower than the current income. Due to the lowered selling price and increased shipping charge, contribution will be lower if Garcia's proposal is be adopted. So, don't make a decision based on just an increase of sales of 2,000 units. Overall income of the company is decreasing. So, I will not suggest to adopt Garcia's proposal. C) Contribution margin per unit = Selling price per unit Variable cost per unit = $300 $100 (Cost of merchandise) = $200 per unit Fixed cost = Rent and salaries = $1,300,000 Breakeven point sales in units = Fixed cost/ Contribution margin per unit = $1,300,000/ $200 per unit = 6,500 units 0r 6,500 units\" $300 = $1,950,000 D} Current sales revenue = 30,000 units\" $300: $9,000,000 Margin of safety [In sales doll ars) = I Current sales Breakeven sales = $9,000,000 $1,950,000: $7,050,000 E) The difference between actual sales and sales at a breakeven point represents the margin of safety. Since the assumption of a breakeven analysis is that production will correspond to sales, margin of safety may also be considered to be excess production over breakeven production. This excess may be expressed in absolute terms as well as in terms of percentage of sales. The size of margin of safety is a very important indicator of the soundness of a business. It shows how much sales may decrease before the rm will suffer a loss. If the size of margin of safety is high, chances of incurring loss by the business will be remote but if it is low, a small reduction in sales may lead to loss. The common cause of lower margin of safety is gure for any business because it tells management how much reduction in revenue will result in breakeven. A higher MOS reduces the risk of business losses. Generally, the higher the margin of safety, the better it is. PROBLEM 4 [16 points) The Height of Fashion Corporation evaluates the performance of the divisions of the company based on ROI and bonuses are based on divisional ROI. A divisional income statement for the Men's Wear Division for the past year is given below. Sales $25,000,000 Cost of Goods Sold $10,000,000 Operating Expenses $ 4,000,000 Invested Assets $50,000, 000 a. Generate Height of Fashion Corporation Men's Wear Division's gross prot income statement [6 points) Heig l t o F . l ion: Men 5 Wear Division lnoome Statement For the ear ended December 31, ZINE Cost of go ods sold [10,000,000] Operating expenses [4,000,000] income from Operations 11,000,000 b. Based on your results in port a above, compute the ROI for the Men's Wear division for the past year. Show all work. [6 points) ROI = Income from operaons*100/lnvestment assets = 1 1,000,000*100/ 50,000,000 = 22% c. Height of Fashion also has a Women's Wear Division. Its R0! for the past year was 18%. The company is considering expanding one of its divisions by investing additional assets into that division. The company will only invest additional assets in one of the divisions, not both. In which division should it invest? Why? Be sure your answer convinces me that you understand the meaning of ROI. [4 points) The company should invest in Men's wear division. Because ROI of Mean's wear (22%} is higher compared to ROI of Women's wear division [18%). Men's wear division will make more return from each dollar of investment in assets compared to Women's wear. Men's wear is more efcient in terms of investments