Answer:
(a) 242,500 units
(b) 267,500 units
Explanation:
(a) Break-even point in sales units:
= Fixed costs ÷ (Selling price per unit - Variable cost per unit)
= $4,850,000 ÷ ($80 - $60)
= 242,500 units
(b) Break even point in sales units if the company desires a target profit of $500,000:
= (Fixed cost + Target profit) ÷ (Selling price per unit - Variable cost per unit)
= ($4,850,000 + $500,000) ÷ ($80 - $60)
= $5,350,000 ÷ $20
= 267,500 units
Answer:
The remaining useful life of the asset is = 10 - 3 = 7 years
Explanation:
The straight line method of depreciation charges a constant depreciation expense through out the useful life of the asset. The formula for depreciation expense under this method is,
Depreciation expense = (Cost - Salvage value) / Estimated useful life of the asset
Plugging in the values for depreciation expense per year, cost and salvage value, we can calculate the total expected life of the asset.
5000 = (53000 - 3000) / estimated useful life of the asset
estimated useful life of the asset = 50000 / 5000
estimated useful life of the asset = 10 years
As the accumulated depreciation balance is of 15000, the depreciation for 15000/5000 = 3years has been charged.
The remaining useful life of the asset is = 10 - 3 = 7 years
Credit side of a the balance of revenue account is transferred
Answer:
When labor unions successfully bargain for wage rates that are HIGHER THAN the equilibrium wage rate, they may cause AN INCREASE IN STRUCTURAL UNEMPLOYMENT.
Explanation:
When a labor union bargains for wages that are above equilibrium rate, this will produce the same effect as a price floor. The supply of labor will increase, while the demand for labor will decrease. This deadweight loss generated by high wages will result in an excess supply that will eventually lead to higher structural unemployment.
Low-income countries have cultures that value economic survival. These type of countries do not have a lot of high paying jobs and the job market is very unstable, so citizens find it imperative to have enough income to survive. These types of countries do not have much in the way of entertainment culture or pop culture, due to people having so little extra money to spend on both.
