Answer:
A) Cash is debited for $294,000. and,
C) Common Stock is credited for $294,000.
Explanation:
When Shares are Issued for Cash, recognize the Assets of Cash (Debit) and also recognize an equity element - Common Stock (Credit).
Answer:
e.$8,000 of fixed costs and $108,000 of variable costs.
Explanation:
Fixed costs don't change with a change in production volume, therefore, fixed costs remain $8,000.
The cost per unit to produce 15,000 units is:
Assuming a new production volume of 18,000 units, budgeted variable costs are:
The budgeted amounts are: e.$8,000 of fixed costs and $108,000 of variable costs.
Answer:
B. List Operational Costs
Explanation:
Answer:
For twig stands= 24 units.
For oak stand = 6 units.
Explanation:
From the question above we are given that the Sale price for Twig and Oak plant stand are 15.00 and 42.00. We are also given that the Variable cost for Twig and Oak plant stand are 2.00 and 19.00 per unit. Thus, the value for the Contribution Margin per unit can be calculated by just subtracting Variable cost for Twig and Oak plant stand from Sale price for Twig and Oak plant stand, that is;
Contribution Margin per unit = (Sale price for Twig and Oak plant) - (Variable cost for Twig and Oak plant stand).
Contribution Margin per unit for Twig = 15.00 - 2.00 = 13.00 and the Contribution Margin per unit for oak = 42.00 - 19.00 = 23.00.
From the question, we are given that the Sales mix in units is 4(twig) and 1(oak) = 4 + 1 = 5.
Thus, the contribution margin for twig = sales mix for twig × Contribution Margin per unit for Twig = 4 × 13 = 52.
Also, the contribution margin for oak = sales mix for oak × Contribution Margin per unit for oak = 1 × 23 = 23.
Total = 52 + 23 = 75.
Hence, the Weighted Average Contribution per unit = 75 / 5 = 15.
Total Break even Sales = 450/15 = 30 units.
Thus, for twig stand; 30 × 4/5 = 24 units.
For oak = 30 × 1/5 = 6 units.
