Answer:
$66,667
Explanation:
Contribution margin = Sales Revenue - Variable cost = 240000-60000 = 180000
Percentage of contribution margin = Contribution margin / sales revenue = 180000 / 240000 = 75%
Breakevent point in total sales = Fixed costs / Percentage of contribution margin
= 50000/0.75 = $66,667
Answer:
Date Account Title Debit Credit
XX-XX-XXXX Interest expense $13,800
Discount on bond payable $1,300
Cash $12,500
Working
The bonds were issued at a price of 92 which means they were issued at:
= 500,000 * 96/100
= $460,000
Interest expense
= Issue price * interest rate * 6/12 months
= 460,000 * 6% * 6/12
= $13,800
Cash:
= Bond price * coupon rate * 6/12
= 500,000 * 5% * 6/12
= $12,500
Answer:<u><em>If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit. </em></u>
Explanation:
If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit. In the case of higher MR , the maximum profit will come about at the level of where MR is equal to the MC. So in this case to increase the profit, MR i,e, also the price can be lower to the level of MC to sell more commodity and earn higher profits.
Answer:
The journal entry for the issuance of the stock is shown below:
Explanation:
Land A/c....................................................................................Dr $236,000
Building A/c...............................................................................Dr $378,000
Common Stock A/c..................................................................................Cr $192,000
Paid in Capital in excess of par value of Common stock A/c.......Cr $422,000
Working Note:
Common Stock = Number of shares × Rate per share
= 24,000 × $8
= $192,000
Paid in Capital in excess of par value of Common stock = (Land + Building) - Common Stock
= ($236,000 + $378,000) - $192,000
= $614,000 - $192,000
=$422,000
