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Answer:
So the break even point is increased by 4,125 units
Explanation:
The computation is shown below:
As we know that
Break even point in units is
= (Fixed expenses ) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
So the current break even point is
= $270,000 ÷ ($40 - $24)
= $270,000 ÷ $16
= 16,875 units
And, if mary ideas are used, so break even point is
= ($270,000 + $24,000) ÷ ($38 - $24)
= $294,000 ÷ $14
= 21,000 units
So the break even point is increased by 4,125 units by taking the difference
Answer:
Allowance for Doubtful Accounts 100 Accounts Receivable 100
Explanation:
The allowance method first estimates an allowance for doubtful debts.When the company receives the actual figure of the amount that have gone wrong, it writes off the trade receivable and utilizes the allowance provided for
<u>When allowance is estimated </u>
Bad Debts (debit)
Allowance for doubtful debts (credit)
<u>When the actual figure of the amount that have gone wrong is obtained</u>
Allowance for doubtful debts (debit)
Account Receivable (credit)
Interest capitalization is defined as the unpaid interest when added to the principal amount of the loan. It increases the overall cost of the loan.
Bianca will have to pay $13.43 monthly to avoid interest capitalization.
Given that:
Principal value of loan = $2600
Maturity Time = 10 years = 120 months
Interest rate = 6.2% = 0.062
Now, to find the amount of payment by using the formula:

Total payment that is to be paid in 1 year:

Thus, the payment that Bianca has to pay is $13.43.
To know more about interest capitalization, refer to the following link:
brainly.com/question/417585
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