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2 years ago

When a company sells multiple products, an increase in total sales always results in an increase in total profits.

1 answer:

5 0

Hindsight is a wonderful thing in any business, or in life in general. We could make the best business decisions and maximise earnings if we had access to a crystal ball that could tell us exactly how many people would buy our goods.

<h3>What Is Cost-Volume-Profit (CVP) Analysis?</h3>

An approach to determining how changes in variable and fixed expenses impact a company's profit is through cost-volume-profit (CVP) analysis.

Companies can utilise CVP to determine how many units they must sell to attain a specific minimum profit margin or break even (pay all expenditures).

CVP analysis makes a number of presumptions, among them the constancy of the sales price, fixed costs, and variable costs per unit.

Learn more about Cost-Volume-Profit refer:

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Bottle Breacher was a successful company that began with crowdfunding through the television show Shark Tank. This is an example

Natalija [7]

Considering the situation described above, this is an example of the "Reward-based" model of crowdfunding.

This is because a reward-based crowdfunding model is a type of crowdfunding that gives the donor something of value in return.

These rewards may be in the form of commodities, services, discounts, or adverts, etc.

There are various types of crowdfunding models. The most common types are the following:

Equity-based model;
Donation or social-based model;
Lending model;
Reward-based model.

Hence, in this case, it is concluded that the correct answer is the "Reward-based model" of crowdfunding.

Learn more here: brainly.com/question/21940014

8 0

3 years ago

On January 1, Year 1, Bell Corp. issued $340,000 of 10-year, 8 percent bonds at their face amount. Interest is payable on Decemb

Free_Kalibri [48]

Answer and Explanation:

The journal entries are shown below:

On Jan 1

Cash $340,000

Bonds payable $340,00

(Being the bond payable is issued for cash)

For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities

On Dec 31

Interest expense ($340,000 × 8%) $27,200

To Cash $27,200

(Being the interest expense for year 1 is recorded)

For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets

On Dec 31

Interest expense ($340,000 × 8%) $27,200

To Cash $27,200

(Being the interest expense for year 1 is recorded)

For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets

7 0

3 years ago

Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $252,000 (original

vfiekz [6]

Answer:

Explanation:

General Journal

Dr Cr

Equipment - new 348,000

Accumulated depreciation 300,000

Cash 68,000

Equipment - old 552,000

Gain 28,000

Workings:

Equipment – new ($280,000 + 68,000) = $348,000

Gain ($280,000 – 252,000) = $28,000

7 0

3 years ago

The federal funds rate target is the most frequently used monetary policy tool.

Nikitich [7]

False is correct answer.

Because the federal funds rate target is not the most frequently used their monetary policy tool.

Hope it helped you.

-Charlie

5 0

3 years ago

Current operating income for Bay Area Cycles Co. is $74,000. Selling price per unit is $120, the contribution margin ratio is 30

NeX [460]

Answer:

1. 6,944 units and $833,333.33

2. $1,080,000 and 22.83%

Explanation:

The computations are shown below:

1. Break-even point in units

= (Fixed expenses ) ÷ (Contribution margin per unit)

where,

Contribution margin per unit = Selling price per unit × contribution margin ratio

= $250,000 ÷ $36

= 6,944 units

Break-even point in sales

= (Fixed expenses ) ÷ (Contribution margin ratio)

= $250,000 ÷ 30%

= $833,333.33

2. For margin of safety and margin of safety ratio:

Margin of safety = Expected sales - break even sales

where,

Expected sales = (Operating income + fixed expense) ÷ (contribution margin ratio)

= ($74,000 + $250,000)

= ($324,000) ÷ (30%)

= $1,080,000

So, the margin of safety would be

= $1,080,000 - $833,333.33

= $246,667

Margin of safety ratio = Margin of safety ÷ total sales

= $246,667 ÷ $1,080,000

= 22.83%

3 0

3 years ago