<u>Solution and Explanation:</u>
Breakeven point = Fixed cost divide by Contribution margin
Contribution margin = Sales minus Variable cost.
Fixed cost
Particular Amount
Salaries $5000
Utilities $1100
Depreciation $1200
Maintenance $780
Total Fixed cost = $8,080.
Variable cost =Maid services plus Other cost = $7 plus $13 = $20
Contribution = $40 minus $20 = $20.
Breakeven point in number = $8080 divide 20 = 404 rented rooms per month.
Breakeven point in $ = Breakeven point rented rooms × rent cost.
=> 404 rooms multiply $40 = $16,160.
Answer:
Decrease cash and increase land
Explanation:
The transaction is:
Account Debit Credit
Land $105,000
Cash $105,000
Purchased land for business.
Both land and cash are assets: they are debited when they increased, and they are credited when they decrease.
Because cash was used to purchase the land, cash decreases and land increases.
Answer:
$ 10
Explanation:
Given:
For Bedford lamp
Sales price = $ 26
Variable cost = $ 16
Machine hours required per unit = 1
Now,
the contribution margin per unit = Sales price - Variable cost
= $ 26 - $ 16
= $ 10
therefore,
the contribution margin per machine hour is calculated as:
= contribution margin / machine hours
or
= $ 10 / 1
or
= $ 10
hence,
the contribution margin per machine hour for the bedford lamp is $ 10
