Solution:
(a) Total contribution margin = Sales - Total variable cost
= 1,320,000-111,000
= $1,209,000
Contribution Rate = Contribution margin / Sales
= 1,209,000/1,320,000
= 91.59090909%
(b) Break even sales = Fixed costs / Contribution rate
= 567,000/91.59090909%
= $619,057
(c) Break even volume in units = Break even / Selling price per unit
= 619,057/125
= 4,953 ( Rounded to near whole number)
Answer:
$45,000
Explanation:
Value of Franchise will be amortized on its useful life.
Value of Franchise = $50,000
Useful life = 10 years
Amortization as on December 31, 2016 = 50000/10 = $5000
Revenue and Franchise operating cost have nothing to do with the value of Intangible asset and amortization. All of these are operating entering which will be dealt in the income statement instead account for as value of Intangible asset.
Having enough on that credit
An estimated amount of money or payment required to pay by the purchaser to the owner or manufacturer is called cost. It is a defined amount of price set by the seller for its product.
$ 72 is the cost for the notebooks.
<h3>How to determine the cost?</h3>
Given,
- Cost of x notebooks = 3x
- Number of notebooks (x) = 24
Cost of 24 notebooks = 3 (24)
Cost = 72
Therefore, option d. $72 is the cost of the notebook.
Learn more about cost price here:
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Answer: d. offer managers a more realistic comparison of budgeted and actual revenue and cost items under their control.
Explanation: A flexible budget is a budget that is flexible, in that it changes with changes in volume or activity. It reflects the expenditure appropriate to various levels of output and offers managers a more realistic comparison of budgeted and actual revenue and expenditure under their control that is applicable for that particular level of activity attained or achieved. As such it is far more useful and sophisticated than the static budget (whose budget amounts do not change) prepared before the fiscal period began when the production/activity level was uncertain.
