Answer:
Explanation:
A product item is a specific version of a product that can be designated as a distinct offering among an organization's products. A product line is a group of closely related products offered by an organization.
Answer:
C) increase production.
Explanation:
Competitive firms maximize their accounting profits when marginal revenue (MR) = marginal cost (MC).
In a perfectly competitive market, all the producers and the consumers are price takers, so they cannot change the price of the goods. So changing the sales price is not possible. Since the marginal revenue is greater than the marginal cost, the firm should increase its production output until MR = MC.
Answer:
Given:
Accounts receivable = $9,000
Allowance for Doubtful Accounts (current year) = $6,800
Estimated uncollected accounts expense = $7,200
The balance of the Allowance for Doubtful Accounts to be reported on the balance sheet at year-end can be computed as:
Allowance for Doubtful Accounts (at year end) = Allowance for Doubtful Accounts (current year) + Estimated uncollected accounts expense - Accounts receivable
Allowance for Doubtful Accounts (at year end) = $6,800 + $7,200 - $9,000
Allowance for Doubtful Accounts (at year end) = $5,000
∴ <em><u>The balance of the Allowance for Doubtful Accounts to be reported on the balance sheet at year-end is $5,000.</u></em>
Answer:
Break-even point dollars
= <u>Fixed cost</u>
Contribution margin ratio
= <u>$12,600</u>
0.73
= $17,260
Contribution per unit = Selling price - Variable cost per unit
= $45 - $12
= $33
Contribution margin ratio = <u>Contribution per unit</u>
Selling price per unit
= <u>$33</u>
$45
= 0.73
Explanation:
In this case, we need to calculate contribution per unit, which is selling price minus variable cost per unit. Then, we will determine the contribution margin ratio, which is contribution per unit divided by selling price. Finally, we will determine the break-even sales in dollars, which is fixed cost divided by contribution margin ratio.