Answer:
The correct answer is A.
Explanation:
Giving the following information:
Unitary variable cost= $10
Total fixed costs= $15,000
Selling price= $12
The break-even point analysis shows the number of units required to cover for the fixed costs.
To calculate the break-even point in units, we need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= 15,000/ (12 - 10)= 7,500 units
Answer:
Material Quantity Variance = $18,000 Favorable
Explanation:
Material Quantity Variance = (Standard Quantity - Actual Quantity) 
Standard Rate
Provided information
Here, Standard Rate = $3.00 per pound of raw material
Standard Quantity for Actual Output of 60,000 batches = 60,000 1.4 pound = 84,000
Actual Quantity = 78,000
Material Quantity Variance = (84,000 - 78,000) $3.00
= 6,000 $3.00 = $18,000
Since standard quantity is more than actual it is a favorable variance.
Answer:
$30,710
Explanation:
Calculation for Jose cost basis for the delivery van
Van Winning bid $25,250
Add Shipping costs of $1,270
Add Paint to match the other fleet vehicles $1,440
Add Sales tax $2,750
Basis for the delivery van $30,710
($25,250 + $1,270 + $1,440 + $2,750 )
Therefore Jose cost basis for the delivery van was $30,710
Full page slide is your answer :)
Answer:
1. Dividend Payment Requirements:
a. Common stock dividend rates are not fixed, unlike the preferred stock dividends. They are not cumulative like cumulative preferred stock. They are only paid when the directors declare them.
b. Preferred stockholders usually have a fixed rate of dividend. They have preference over common stockholders in dividend payments. Some preferred stockholders enjoy cumulative dividends, unlike common stockholders.
2. Common stockholders expect higher dividends than the preferred stockholders because they bear the residual business risks associated with the company.
Explanation:
Dividend income results when management declares it to be paid to the stockholders. They are usually paid out of earned income. The discretion to declare dividends lies solely with management. On the other hand, stockholders can decide to take advantage of the movements in stock prices at the stock exchange by earning capital gains through selling their shares. This income is not at the discretion of management insofar as the entity is being run profitably.
