Answer:
The break even point in units is 24000 rooms per year.
Explanation:
The break even point in units is a point where enough units are sold to earn a revenue that covers the total cost of the business and there is neither a profit nor a loss to the business. The break even point in units can be calculated as follows,
Break even in units = Fixed cost / Contribution margin per unit
Where,
Contribution margin per unit = Selling price per unit - Variable cost per unit
So,
Contribution margin per unit = 90 - 40 = $50
Break even in units = 1200000 / 50 = 24000 units
Answer:
D : All options are correct
Explanation:
- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.
- @ Q = 500 units, Selling Price is set at SP = $35
- @ Q = 500 units, Buying Price is set at BP = $40
- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.
- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.
- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.
Answer:
The entry to record bad debt expense:
Debit Bad debts expense $24,446
Credit Allowance for Doubtful Accounts $24,446
Explanation:
1. At December 31, 2020,
Bad debt are estimated: 11% x $204,600 = $22,506
Before adjusting, Allowance for Doubtful Accounts had a debit balance of $1,940. So Bad debt expense will be: $1,940 + $22,506 = $24,446
The adjustment to record Bad debt expense and Allowance for Doubtful Accounts:
Debit Bad debts expense $24,446
Credit Allowance for Doubtful Accounts $24,446
Answer:
A) March 31 journal entries for wages expense and wages payable
- Dr Salaries and Wages Expense account 64,000
- Cr FICA Taxes Payable account 4,896
- Cr Federal Income Tax Payable account 7,500
- Cr State Income Tax Payable account 3,100
- Cr Union Dues Payable account 400
- Cr Salaries and Wages Payable account 48,104
B) March 31 journal entries for company's payroll tax expenses
- Dr Payroll Tax Expense account 5,596
- Cr FICA Taxes Payable account 4,896
- Cr State Unemployment account 700
Answer:
$75.12 million
Explanation:
For computation of Valence's share price first we need to find out the share price which is shown below:-
Share price = (Paid earning of Valence × Ended year of expected earning) ÷ (Equity cost of capital - Expected growth rate)
= (40% × $800 million) ÷ (9% - 7%)
= (0.4 × $800 million) ÷ (0.09 - 0.07)
= $320 million ÷ 0.02
= $16,000 million
Now, Valence's share price
= Total value ÷ Outstanding total shares
= $16,000 million ÷ 213 million
= $75.12 million
