Answer:
1. $12
2. $8
Explanation:
1. At Break-Even, George's profit will be equal to their cost.
Revenue = Costs.
Variable costs are $9.
Fixed costs are $24,000
Quantity is 8,000 shirts
Let the Break-Even price be x.
8,000x = 24,000 + (9 * 8,000)
8,000x = 24,000 + 72,000
8,000x = 96,000
x = 96,000/8,000
= $12
2. At 50% more shirts. George's would be selling;
= 8,000 + 8,000(0.5)
= 12,000 shirts
New Break-Even Point will be;
12,000x = 24,000 + 72,000
12,000x = 96,000
x = 96,000/12,000
x = $8
Answer:
Since Putney, Inc., forfeited their stock subscription, then they will lose their stocks and the money they invested in Pippa Corporation.
In this case, Pippa Corp. was being completely acquired by Putney, Inc., and the whole operation went down, then the initial payment must be recorded as additional paid in capital. It should not be included as part of operating income since it wasn't a normal business activity.
Answer:
people may not be able to get their tax money they are owed due to government spending