Answer:
1. 2,100 units
2. $25,200
3. 2,300 units and $27,600
Explanation:
The break-even point is the level of sales at which the business incur no profit no loss.Fixed and variable costs are covered at this level of sales.
Contribution Margin = Sale price - variable cost = $12 - $9 = $3
Contribution Margin ratio= Contribution Margin / Sale price = $3 / $12 = 25%
1.
Break-even point = Fixed cost / Contribution margin = $6,300 / $3 = 2,100
2.
Break-even point = Fixed cost / Contribution margin ratio = $6,300 / 25% = $25,200
3.
Fixed Cost = $6,300 + $600 = $6,900
Break-even point = Fixed cost / Contribution margin = $6,900 / $3 = 2,300 units
Break-even point = Fixed cost / Contribution margin ratio = $6,900 / 25% = $27,600
Answer:
b. decreases; decreases; falls.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
Recession can be defined as a period of economic meltdown, in which there's a general decline in all economic activities such as trade.
Hence, when the economy slips into a recession, normally the demand for bonds decreases, the supply of bonds decreases, and the interest rate falls, ceteris paribus (everything else held constant).
Answer:
Explanation:
It seems to be a bilateral contract among Tabor and Martin with valid contract, as both parties have the capacity to fulfill duties. Martin delivers the cabinets and Tabor pays for them upon delivery, using the installment method as a promise while the second installment is done. This way, the bilateral contract was interrupted and needed consideration due to the incapacity of Martin to perform correctly from the agreement.
Martin cannot legally collect $100 from delivering the remaining 10 cabinets on the nest installment. There is one way that he could have collect the money legally, but he made a wrong reasoning to Tabor with regards to the additional payment: will promise to deliver the remaining thirty cabinets only if Tabor will pay $50 per cabinet. This means that Martin had violated the original agreement. Tracing the contract, the deficit of $10 per cabinet would mean incapacity of one party to fulfill the agreement. Also, the modification of agreement gave Tabor no choice to have his cabinets delivered due to Tabor’s statement only if Tabor will pay $50 per cabinet
Answer:
True
Explanation:
Considering the date provided in the question, Production costs - cost of goods sold = Ending Inventory.
So $ 1900 (production costs) - $ 1000 (cost of goods sold) = $ 900. Ending Inventory.
This would involve adjustments for changes in work in process balances if the information was provided.
The selling expenses are not part of manufacturing costs are thus not considered in the answer
Answer:
Option A The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected.
Explanation:
The reason is that the changes in the currency exchange rate in which the company receives the payment and is also not a home currency, such risk exposure is known as economic exposure. So the only option that correct here is option A.
Option B is incorrect because depreciation is non cash item and it is not exposed to currency fluctuations.
Option C and D are also incorrect because domestic firms don't face any economic exposure.