Answer:
- a. <em>Break-even quantity:</em> <u>28,000 pens</u>
- b<em>. Price</em>: <u>$1.51 per pen</u>
Explanation:
1. Break-even quantity
<u>a) Revenue, R(x)</u>
The monthly revenue is the product of the price by the number of units sold in the month.
Naming x the number of pens sold in the month:
<u>b) Cost, C(x)</u>
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The monthly cost is the sum of the fixed cost per month plus the variable costs:
- C(x) = $21,000 + 0.25 × x = 21,000 + 0.25x
<u>c) Break-even</u>
Break-even is the point when the revenue and the total costs are equal, this is, when the profit is zero. Write the equation and solve:
Hence, the break-even quantity is 28,000 pens.
2. Price pens must be sold to obtain a monthly profit of $18,000
Profit = Revenue - Total cost
- P(x) = x.p - [ 0.25x + 21,000]
Where p is the price.
- P(x) = x.p - 0.25x - 21,000
Substitute the quantity demanded, x, with 31,000, and the profit, P(x) with 18,000:
- 18,000 = 31,000p - 0.25(31,000) - 21,000
Solve for p and compute:
- 31,000p = 18,000 + 7,750 + 21,000
That is $1.51 per pen.
Answer and Explanation:
the journal entry is given below:
Depletion Expense $1,358,500
To Accumulated Depletion $1,358,500.
(Being depletion expense is recorded)
Here the depletion expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets
Working note
Depletion expense is
= ($5,900,000 + $600,000) ÷ $2,000,000 × 418,000
= $1,358,500
Answer:
The answer is C.
Explanation:
A decrease in inventory means customers are buying inventories (goods) from the business. It is an inflow because money comes in.
Option A is incorrect because a decrease in common stock means shareholders are withdrawing their shareholding from the business and the business will pay them. This is an outflow.
Option B is incorrect because a decrease in long term debt means the business is paying its debt or redcuing its liability and this is an outflow.
Option D is also incorrect because an increase in fixed assets means the business is buying this asset with cash and this is an outflow
Answer: Business intelligence
Explanation: Business intelligence is a term used to describe the strategic steps taken to obtain or collect data,carry out the analysis of the data analysis, showing trends, patterns and relationship between factors, treatments and other considerations before making business decisions. Business intelligence is all in modern business processes to adequately explore the advances in technology for Business decisions making.