Answer:
$52,456,800
Explanation:
For computation of total stockholders’ equity first we need to find out the total capital stock and total paid in capital which is shown below:-
Total Capital stock = Preferred stock + Common stock
= $153,000 + $20,300,000
= $20,453,000
Total Paid in capital = Paid in capital in excess of par of common stock + Paid in capital in excess of par of preferred stock
= $25,000,000 + $59,000
= $25,059,000
Total stockholder equity = Total Capital stock + Total Paid in capital + Retained earning - Treasury stock
= $20,453,000 + $25,059,000 + $7,600,000 - $655,200
= $52,456,800 - $655,200
= $52,456,800
Therefore for computing the total stockholder equity we applied the above formula.
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Answer:
Explanation:
Last year Current year
Selling Price 10 10
Varaible Price 5 6
Contribution Margin 5 4
Break even is the point where total cost is equal to total revenue mean no profit and loss.
company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.
Break Even using FIFO method : first In first out system
Fix Cost = 86000
contribution from opening units(6000*5) = 30000
Remaining Fix cost that should be Covered from
current year products = 56000
Units to be sold for break-even ( 56000/4) = 14000
so we have break even units 6000+14000 = 20000
Fix cost = -86000
Opening 6000*5 = 30000
Current 14000*4 = 56000
Profit = 0
Break Even using LIFO method : Last in first out
Fix Cost = 86000
Break even = Fix Cost / Contribution margin
Break even = 86000/4 =21500
current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.
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