Answer:
The answer is "$131250".
Explanation:
[tex]\text{Hourly margin of contribution}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \text{Hourly margin of contribution}[/tex]
[tex]Muffin \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \frac{7}{.2} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 35\\\\Coffee\ Cakes \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \frac{8}{.3} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 26.67[/tex]
The muffin should be made better.
Muffins that can be manufactured.
[tex]\to \frac{3750}{.2} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 18750\\\\ \to 18750 \times 7\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 131250 \\\\[/tex]
g Suppose you own a jewelry store. In exchange for a discount on your burglary insurance premium, you promise the insurer that you will keep a trained guard dog on the premises at ALL times, even when the store is closed. You decide one evening to take the dog home with you (it's his birthday and you want to give him a night off) instead of leaving him in the store. A burglar breaks in and steals everything that night. The insurance company finds out the dog wasn't in the store when the burglary happened and denies your claim. WHY
Answer:
The store's insurance company is right to deny the claim, provided it is written down in the insurance policy agreement between the store and the insurance company. The policy agreement requires the keeping of a trained guard dog on the premises at ALL times.
Explanation:
The violation of a policy condition can only be overlooked if it is not stated in the insurance agreement. The promise to keep a trained guard dog on the premises is a policy condition. Taking the dog home for a night violates that condition. You could have brought a substitute dog on the night of the dog's birthday. This way, it could have frustrated the burglar's efforts on the faithful day.
Present values Suppose going to college costs 20,000 a year. The average earnings of a highschool graduate are 20,000 a year. By going to college, suppose one can expect to earn 50,000 a year. Set up the expressions for the present value of benefits and costs, and the net present value of a college education if the interest rate is 10%.How does this change if the interest rate is 15%
Answer:
Annual benefit from college education (Increase in earnings) = $50,000 - $20,000 = $30,000
Assuming 4 years of college study period
The net present value of a college education if the interest rate is 10% is as follows:
Net present value = PV of benefits - PV of costs
Net present value = Annual benefit*P/A(10%,4) - Annual costs of attending college*P/A(10%,4)
Net present value = 30,000 * P/A(10%,4) - 20,000 * P/A(10%,4)
Net present value = (30,000 - 20,000) * P/A(10%,4)
Net present value = 10,000 * P/A(10%,4)
Net present value = 10,000 * 3.1699
Net present value = $31,699
How does this change if the interest rate is 15%?
Net present value = 30,000 * P/A(15%,4) - 20,000 * P/A(15%,4)
Net present value = (30,000 - 20,000) * P/A(15%,4)
Net present value = 10,000 * 2.855
Net present value = $28,550
"You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 6 percent, –13 percent, 24 percent, 18 percent, and 15 percent. The average inflation rate over this period was 3 percent and the average T-bill rate was 4.35 percent. What was the average real return on the company's stock? [First find average of the nominal returns and use Fisher's equation to find average real return]"
Answer:
6.80%
Explanation:
The average nominal returns is the sum of the returns for 5 years divided by the number of returns considered( i.e 5, 5 returns for 5 years)
average nominal returns=(6%-13%+24%+18%+15%)/5
average nominal returns=10.00%
The Fisher's equation is shown thus:
(1 + i) = (1 + r) (1 + π)
i=nominal return=10.00%
r=average real return=the unknown
π=inflation rate=3%
(1+10.00%)=(1+r)*(1+3%)
1.10=(1+r)*1.03
1+1=1.10/1.03
r=(1.10/1.03)-1
r=6.80%
Materials requisitions are: generally used less frequently in process costing than job order costing. not used in process costing. generally used more frequently in process costing than job order costing. used more frequently by latter stage production departments.
Answer:
generally used less frequently in process costing than job order costing.
Explanation:
Manufacturing costs can be defined as the overall costs associated with the acquisition of resources such as materials and the cost of converting these raw materials into finished goods.
Basically, manufacturing costs include direct labor costs, direct materials cost and manufacturing overhead costs.
Process costing can be defined as a cost accounting method used for assigning manufacturing or production costs to the units of goods produced by a business firm over a specific period of time. It is mostly used by firms that produce a large quantity of homogeneous or similar products on a continuous basis. Process costing typically uses more than one Work in Process Inventory account because costing at each stage of production or manufacturing process.
Job order costing can be defined as a cost accounting method used to determine and accumulation of the cost of manufacturing each product or a single unit of production. Job costing order typically uses only one Work in Process Inventory account for each product.
Hence, Process costing typically uses a separate Work in Process Inventory account for each department while job order costing typically uses only one Work in Process Inventory account for each product.
In conclusion, materials requisitions are generally used less frequently in process costing than job order costing.
when a person sells a stick for a profit he needs to know that
Answer:
He needs to know that it is not a scam and that its gonna be a fair I give you give.
Explanation:
On July 1, 2021, Larkin Co. purchased a $460,000 tract of land that is intended to be the site of a new office complex. Larkin incurred additional costs and realized salvage proceeds during 2021 as follows: Demolition of existing building on site $ 71,000 Legal and other fees to close escrow 12,900 Proceeds from sale of demolition scrap 8,600 What would be the balance in the land account as of December 31, 2021
Answer:
$75,300
Explanation:
The computation of the balance in the land is shown below;
Purchase cost
$460,000
Add:
Demolition of existing building on site
$71,000
Add:
Legal and other fees to close escrow
$12,900
Less:
Proceeds from the sale of demolition scrap
($8,600)
Balance in the land
$75,300
Therefore, balance in the land account as of December 31, 2021 is $75,300
A worker may prefer to be classified as an employee (rather than an independent contractor) for which of the following reasons: a.To avoid the overall limitation (50%) on unreimbursed business entertainment expenses. b.To claim unreimbursed work-related expenses as a deduction for AGI. c.To avoid the limitations on unreimbursed work-related expenses. d.To avoid the self-employment tax.
Answer:
To avoid the self-employment tax
Explanation:
The purpose of the self-employment tax is to provide Social Security and Medicare coverage and benefits for individuals who work for themselves. Self-employment income is the net income from a trade, business, or profession operated by a sole proprietor or partnership even if the business is full-time or part-time. They are exempted because they are employed by others.
Some groups who are exempt from self-employment tax includes:
1. Non resident aliens
2. Aliens who work for international organizations and foreign governments 3. Members of certain religious sects who meet requirements and waive all social security benefits etc.
Suppose that if the Doombug toy is dropped, the production and sale of other Draper toys would increase so as to generate a $16,000 increase in the contribution margin received from these other toys. If all other conditions are the same, the financial advantage (disadvantage) from discontinuing the production and sale of Doombugs would be:
Answer:
$6,000 Decrease
Explanation:
Sales$150,000
Calculation to determine the financial advantage (disadvantage) from discontinuing the production and sale of Doombugs would be:
First step is to calculate the Profit from Doombugs
Sales 150,000
Less Variable expenses 120,000
Contribution margin 30,000
Avoidable fixed expenses 8,000
Profit from Doombugs $22,000
Now let calculate the financial advantage (disadvantage)
Financial advantage (disadvantage)=-$22,000+$16,000
Financial advantage (disadvantage)=-$6,000 Decrease
Therefore the financial advantage (disadvantage) from discontinuing the production and sale of Doombugs would be:$6,000 Decrease
analyze how a person's ethics or values might affect his performance on the job. Can someone help me or give me a few example?
Activity A1 takes 5 weeks, A2 takes 7 weeks, and A3 takes 4 weeks with a 50% probability and 10 weeks with a 50% probability. What is the project completion time under the best-case scenario, that is, A3 is early and takes 4 weeks
Answer:
12
Explanation:
The computation of the project completion time under the best-case scenario is shown below;
= Activity A1 weeks taken + activity A2 weeks taken
= 5 weeks + 7 weeks
= 12
We simply added the time taken by activity 1 and activity 2 so that the project completion time could come
In footnotes to its year-end annual report, Bancfirst Corp. reported that held-to-maturity debt securities with an amortized cost of $3,929 thousand had an estimated fair value of $3,963 thousand. The balance sheet reported:
Answer: Held to maturity asset of $3,929 thousand
Explanation:
Held-to-maturity securities as the term implies, are purchased by the company to be held until they mature or at the very least, for a period longer than a year. As a result, they are to be treated as Non-current assets because they are assets that owned for over a year.
Held to Maturity assets are to be recorded at amortized cost not fair value so these debt securities will be recorded at the amortized cost of $3,929 thousand.
g Which of the following best describes the company-related considerations (beyond software type) for the choice of a process methodology in a software project?1. Company size and culture and geographic team distribution ++2. Start-up vs established company3. Software size +4. Risk-taking vs. bureaucracy
Answer:
vii) Which of the following best describes the company-related considerations (beyond software type) for the choice of a process methodology in a software project?
1. Company size and culture and geographic team distribution
2. Start-up vs established company
3. Software size
4. Risk-taking vs. bureaucracy
Explanation:
Hey guys. I am trying to get this done before the school year ends, but I need some help.
I need a business proposal example to submit and present in front of my class. It can be any school-appropriate business, and also be very persuasive.
Giving 10 points to your answer, so please make it count!
Answer:
Title: The Cozy Cupcake Café: Satisfy Your Sweet Tooth in Style!
Introduction:
Ladies and gentlemen, today I present to you an exciting business venture that combines the irresistible allure of cupcakes with a cozy and welcoming environment. The Cozy Cupcake Café aims to be the go-to destination for cupcake lovers, offering a delightful experience while satisfying their sweet cravings. Our mission is to create a comfortable space where customers can indulge in delectable treats and enjoy moments of pure bliss. Allow me to present our comprehensive business proposal for The Cozy Cupcake Café.
1. Business Overview:
The Cozy Cupcake Café will be a charming establishment strategically located in the heart of our community. We will provide an inviting atmosphere, with comfortable seating, warm colors, and a friendly staff that creates an oasis of relaxation amidst the hustle and bustle of daily life.
2. Unique Selling Proposition:
Our café will differentiate itself from competitors by offering a diverse range of cupcake flavors meticulously crafted to cater to all taste preferences. From classic favorites like vanilla and chocolate to innovative combinations like salted caramel and raspberry lemonade, our menu will have something for everyone.
3. Exceptional Customer Experience:
We prioritize the customer experience and aim to create lasting memories. Our well-trained and enthusiastic staff will provide excellent service, ensuring every guest feels welcome and attended to. Additionally, we will organize cupcake decorating workshops, where customers can unleash their creativity and learn various techniques.
4. Quality Ingredients and Customization:
At The Cozy Cupcake Café, quality is our top priority. We will source the finest ingredients to guarantee fresh, delicious cupcakes every time. Furthermore, we understand the importance of catering to dietary restrictions and preferences. Our menu will include vegan, gluten-free, and low-sugar options, ensuring that all customers can enjoy our delectable treats.
5. Marketing Strategy:
To create a buzz around our café, we will employ a multifaceted marketing approach. This will include social media campaigns, targeted advertisements, collaborations with local influencers, and partnerships with nearby businesses. We will also participate in community events and offer special promotions to attract new customers.
6. Financial Projections:
Our meticulous financial planning ensures the viability and profitability of The Cozy Cupcake Café. Based on extensive market research, we project healthy revenue growth, driven by a combination of foot traffic, repeat customers, and catering orders. Our cost projections account for ingredients, staffing, rent, utilities, marketing, and other operational expenses.
Conclusion:
The Cozy Cupcake Café is poised to become the ultimate destination for cupcake enthusiasts in our community. With an inviting ambiance, a wide variety of delectable flavors, exceptional customer service, and a commitment to quality, we are confident in the success of our venture. We invite you to join us on this exciting journey and be part of a business that not only satisfies the sweet tooth but also creates a warm and delightful experience for all. Thank you for your attention, and we welcome any questions or feedback you may have.
PLEASE MARK AS BRAINLIEST
Job Costs At the end of April, Prichard Company had completed Jobs 50 and 51. Job 50 is for 1,000 units, and Job 51 is for 500 units. The following data relate to these two jobs: On April 20, raw materials were requisitioned for production as follows: 700 units for Job 50 at $18 per unit and 1,400 units for Job 51 at $18 per unit. During April, Prichard Company accumulated 300 hours of direct labor costs on Job 50 and 1,100 hours on Job 51. The total direct labor was incurred at a rate of $20 per direct labor hour for Job 50 and $12 per direct labor hour for Job 51. The predetermined factory overhead rate is $6.00 per direct labor hour. a. Determine the balance on the job cost sheets for Jobs 50 and 51 at the end of April. Job 50 $ fill in the blank 1 Job 51 $ fill in the blank 2 b. Determine the cost per unit for Jobs 50 and 51 at the end of April. Round all answers to the nearest whole cent. Job 50 $ fill in the blank 3 Job 51 $ fill in the blank 4
Answer:
Prichard Company
At the end of April:
Job 50 Job 51
The balance on the job cost sheets $20,400 $45,000
The cost per unit $20.40 $90
Explanation:
a) Data and Calculations:
Job 50 Job 51
Units produced 1,000 500
Raw materials 700 1,400
Cost of raw materials per unit $18 $18
Total cost of raw materials $12,600 $25,200
Total direct labor hours 300 1,100
Direct labor rate per hour $20 $12
Total cost of direct labor $6,000 $13,200
Factory overhead $1,800 $6,600
Predetermined overhead rate = $6 per direct labor hour
Total cost of raw materials $12,600 $25,200
Total cost of direct labor 6,000 13,200
Factory overhead applied 1,800 6,600
Total cost on April 30 $20,400 $45,000
Units produced 1,000 500
Cost per unit $20.40 $90
Find the sales tax and total cost of an espresso machine that costs $77.95. The tax rate is 8%. Round your answer to the nearest cent.
Answer:
About 84.2
Explanation:
8% of 78.00 = 6.24
78.00 + 6.24 = 84.24 (Around 84.2
apologies if wrong
The balance sheet data below pertain to American Pulp and Paper for the recent year ended. In addition, sales were $60 million. For the coming year, management believes that sales will increase by 20% to a total of $72 million. The profit margin is expected to be 5%, and the dividend payout ratio is targeted at 40%. No excess capacity exists. Determine the additional funds needed (AFN) in millions of dollars for the coming year using Additional Funds Needed (AFN) Equation Method.
Answer:
$0.24 million
Explanation:
Calculation to Determine the additional funds needed (AFN) in millions of dollars for the coming year using Additional Funds Needed (AFN) Equation Method
Additional Funds Needed (AFN) =[ (14/60)(12) - (2/60)(12)]- (0.05)(72)(.6)
Additional Funds Needed (AFN) = ($2.8 - 0.4) -$2.16
Additional Funds Needed (AFN) =$0.24 million
Therefore the additional funds needed (AFN) in millions of dollars for the coming year using Additional Funds Needed (AFN) Equation Method is $0.24 milion
Scenario C. Victor, the president of Tortoise Bay Pharmaceuticals Inc., sends a memo to his vice presidents regarding new procedures for succession planning in the company. The vice presidents meet informally to discuss the new procedures. When the procedures are announced to the other employees, they form feedback teams. These teams draft memos providing feedback to the vice presidents and CEO regarding the advantages, disadvantages, and potential problems with the new procedures. The original memo sent by the president of the company is an example of
Answer:
Tortoise Bay Pharmaceuticals Inc.
The original memo sent by the president of the company is an example of
downward communication.
Explanation:
Whereas upward communication flows from the lower levels of an organization to higher ranks, with downward communication, information flows from one top level to a lower level in the organization's hierarchy. For example, the original memo sent by the CEO of Tortoise Bay Pharmaceuticals Inc. to his vice presidents is a downward communication. The memos that provide employees' feedback (an efficient communication feature) to the vice presidents and the CEO about the new procedures are examples of upward communication.
A coal mine was acquired at a cost of $4,000,000. No salvage value was expected and the estimated number of units available for production was 4,000,000 tons. During the first year, 440,000 tons of coal was mined and sold. The depletion expense for the first year was
Answer:
$440,000
Explanation:
The depletion of the coal mine can be calculated using the formula below;
Depletion expense for the year
= (Cost of mine - Salvage value) × (Tons of coal sold in the year/Total tons capacity of the mine)
Given that;
Cost of mine =$4,000,000
Salvage value = 0
Tons of coal sold in the year = 440,000 tons
Total tons capacity of the mine = 4,000,000 tons
Therefore,
Depletion expense for the year
= (4,000,000 - 0) × (440,000/4,000,000)
= 4,000,000 × 0.11
= $440,000
In a perfectly competitive labor market marginal resource cost is: Multiple Choice the market value of the firm's output times the number of workers employed always zero the wage rate times the number of workers employed the wage rate
Answer: the wage rate
Explanation:
The marginal resource cost for labor is the additional amount that a producer would have to pay to be able to get an additional worker to work under them and produce goods.
This is therefore the wage rate because it is the amount that the worker will be paid. This wage rate is determined by market forces in a competitive market which means that it is based on demand and supply; if more people are needed, the wage rate is higher and if less are needed, the wage rate is lower.
Zoie makes 2 products from a common input. Each product may be sold at the split-off point or processed further. The following is known about each product: Product 1 Product 2 Allocated joint processing costs 21200 35700 Sales value at split-off point 38100 19200 Costs of further processing 17000 19900 Sales value after further processing 30000 28300 What is the minimum amount the company should accept if Product 1 is sold at the split-off point
Answer:
Zoie
The minimum amount the company should accept if Product 1 is sold at the split-off point is:
= $30,000.
Explanation:
a) Data and Calculations:
Product 1 Product 2
Allocated joint processing costs 21,200 35,700
Sales value at split-off point 38,100 19,200
Costs of further processing 17,000 19,900
Sales value after further processing 30,000 28,300
The minimum amount the company should accept if Product 1 is sold at the split-off point is $30,000.
b) Further processing of Product 1 does not make economic sense. Zoie should sell the product at split-off point at $38,100. Similarly, based on the facts provided, Product 2 hardly deserves further processing.
Departmental rates are appropriate when all the following exist except: A. Not all products pass through the same processes.B. Departments are not similar in function.C. Departments have dissimilar cost drivers.D. All departments have similar cost drivers and cost usage characteristics.E. Products consume departmental resources in a significantly different manner.
Answer:
D. All departments have similar cost drivers and cost usage characteristics.
Explanation:
An organizational structure can be defined as the process which typically involves dividing an organization into various functional units.
Basically, the organizational structure comprises of three (3) main dimensions and these are;
I. The vertical dimension: this is typically the decision-making responsibilities (decentralization and centralization).
II. The horizontal dimension: this divides the organization into subunits.
III. Integrating mechanisms: it is based typically on the strategic mechanism that controls the various subunits within an organization.
Manufacturing costs can be defined as the overall costs associated with the acquisition of resources such as materials and the cost of converting these raw materials into finished goods. Manufacturing costs include direct labor costs, direct materials cost and manufacturing overhead costs.
A departmental rate can be defined as the expenses that are calculated with respect to the departments in the production process of a factory.
Generally, when all the departments of an organization have or incurs similar cost drivers and cost usage characteristics, using departmental rates isn't appropriate.
SKCM Co. has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; interest cost, $7,200. The discount rate applied by the actuary was 8%. What was the beginning PBO
Answer: $90,000
Explanation:
The Interest cost is based on the beginning PBO and the discount rate by the formula:
Interest cost = Beginning PBO * Discount rate
7,200 = Beginning PBO * 8%
Beginning PBO = 7,200 / 8%
= $90,000
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Umm Chile... anyway so
To temporarily offset a depreciation in the dollar's exchange value, the Federal Reserve could ____ the U.S. money supply which would promote a (an) ____ in U.S. interest rates and a (an) ____ in investment flows to the United States. a. Increase, decrease, decrease b. Increase, increase, increase c. Decrease, decrease, increase d. Decrease, increase, increase
Answer:
D
Explanation:
depreciation occurs when the value of a currency falls relative to the value of another currency,
for example, if the exchange rate is $1 = 190 naira and after a period, exchange rate is $1 = 380.50 naira. it can be said that the naira has depreciated against the dollar
To mitigate against deprecation, contractionary policies should be carried out
contractionary policies reduces the money supply in the economy. When there is a reduction in money supply, interest rate increases and this encourages the flow of funds as it is more profitable to do business in that country
In the current year, she sold her interest in Activity D for a $10,000 gain. Activity D, which had been profitable until last year, had a current loss of $1,500. Answer the following questions to determine how the sale of Activity D affects Sarah's taxable income in the current year. a. The amount of suspended losses carried forward to the year of the sale is $fill in the blank 1 20,000 . b. What amount of the suspended losses is allocated to Activity D
Answer:
a. -$20,000
b. -$2,000
Explanation:
a. The amount of suspended losses carried forward to the year:
= 30,000 + (-30,000) + (-15,000) + (-5,000)
= -$20,000
b. Suspended losses allocated to Activity D:
First find the total amount of losses:
= -30,000 - 15,000 - 5,000
= -$50,000
Activity B accounted for -$5,000 of this loss.
Suspended losses to be allocated to D would therefore be:
= -5,000 / - 50,000 * -20,000
= -$2,000
The new proposed project needs to use an expensive medical equipment that is already owned by the company. The purchase price of this equipment is $637,000 . The company also spent $124,000 to update its operating software. The equipment recieved a recent market bid from an interested buyer of $718,000. The current book value of $578,000. If the company decides to use this equipment for the new project , what value should we use for this equipment to be included in the initial cash flow of the project
Answer:
$718,000
Explanation:
Based on the information given we were told that the equipment received a MARKET BID from a buyer of the amount of $718,000 which means that in a situation where the company choose to use this equipment for the new project the VALUE that we should use in order for this equipment to be included in the INITIAL CASH FLOW of the project will be the amount of $718,000 which represent the recent MARKET BID amount received from the Interested buyer.
At the beginning of the year, Nothing More, Corp., had a long-term debt balance of $37,929. During the year, the company repaid a long-term loan in the amount of $10,839. The company paid $4,235 in interest during the year, and opened a new long-term loan for $9,525. What was the cash flow to creditors during the year
Answer:
$5549
Explanation:
Calculation to determine the cash flow to creditors during the year
Using this formula
Cash flow to creditors =Interest -New debt
Let plug in the formula
Cash flow to creditors=4235-(9525-10,839)
Cash flow to creditors=4235-(-1314)
Cash flow to creditors =$5549
Therefore the cash flow to creditors during the year is $5549
Rhoda Morgenstern just settled an insurance claim. The settlement calls for increasing payments over a 20-year period. The first payment will be paid one year from now in the amount of $50,000. The following payments will increase by 2 percent annually. What is the value of this settlement to Rhoda today if she can earn 5 percent on her investments
Answer:
PV = $733,271
Explanation:
From the given information:
The annual payment (P) = $50,000
number of years (n) = 20
The growth percentage = 2% = 0.02
Rate of percentage earned = 5% = 0.05
Using the formula illustrated below to determine the Present Value (PV) of a growing annuity;
[tex]PV = \dfrac{P}{r-g}\Big ( 1 - \Big ( \dfrac{1+g}{1+r} \Big) ^n \Big)[/tex]
[tex]PV = \dfrac{50000}{0.05-0.02}\Big ( 1 - \Big ( \dfrac{1+0.02}{1+0.05} \Big) ^{20} \Big)[/tex]
[tex]PV = \dfrac{50000}{0.03}\Big ( 1 - \Big ( \dfrac{1.02}{1.05} \Big) ^{20} \Big)[/tex]
[tex]PV =1666666.667 \Big ( 1 - \Big ( 0.9714285714 \Big) ^{20} \Big)[/tex]
[tex]PV =1666666.667 \Big ( 1 -0.5600379453 \Big)[/tex]
[tex]PV =1666666.667 \Big (0.4399620547 \Big)[/tex]
[tex]PV =\$733270.0913 \\ \\ \mathbf{PV \simeq \$733,271}[/tex]
Crane Company sells radios for $50 per unit. The fixed costs are $465000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $165000 and variable costs will be 50% of the selling price. The new break-even point in units is:
Answer:
25,200
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Fixed cost = $465000 + $165000 = $630,000
Price = $50
variable cost = 0.5 x 50 = $25
Breakeven = $630,000 / $25 = 25,200
Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system. Aug. 1 Purchased merchandise with an invoice price of $108,000 and credit terms of 3/10, n/30. Aug. 11 Paid supplier the amount owed from the August 1 purchase.
Answer:
Supplier or creditor ac Dr .... to Cash ac Cr
Explanation:
Company records purchases using the gross methodPurchase ac Dr .. to Creditor ac Cr
{ Asset / Expense increase debit , liability increase credit }
Paid supplier the amount owed from the August 1 purchase.Supplier or creditor ac Dr .... to Cash ac Cr
{ Liability decrease debit , Asset decrease credit }