Answer:
a) Using mathematical equation 1599 units
b) Using contribution margin 1598 units
Explanation:
Break even point in units in mathematical terms = 
= 
= 
= 1599 units
b) Using contribution margin
Contribution = Selling Price - Variable Cost = $650 - $450 = $200
Contribution margin = ( $200/ $650 ) X 100 = 30.77%
BEP = $319,700 / 30.77% = $1,039,000.025
Number of units = $1,038,999.025/$650 = 1598 units
a) Using mathematical equation 1599 units
b) Using contribution margin 1598 units
Answer:
The Journal entries are as follows:
(i) On May 1, 2019
Inventory A/c Dr. $87,000
To Notes payable $87,000
(To record purchase of inventory)
(ii) On Nov 31, 2019
Interest Expense A/c Dr. $5,075
To Interest payable $5,075
(To record the Accrued the interest.)
Workings:
May to Nov = 7 months
Therefore,
Interest Expense = 87,000 × 10% × 7÷12
= $5,075
Answer:
Production Oriented
Explanation:
A business that practices a manufacturing strategy tends to ignore the needs of its consumers and only focus on making a quality product effectively, called Production oriented company.
In this case, PPG Industry only concentrates on making a high-quality windshield, and ignore the purchasing power of their customers, also their scientist ignore the color choice of the consumer.
