Answer:
Requirement of the question is to prepare journal entries for each of transaction. where it is given that 40,000 common shares were outstanding at Beginning of the year.
Explanation:
Answer:
services
Explanation:
Based on the scenario being described it can be said that this is an example of Zappos has a strong competitive advantage through services. These are transactions where no physical good is transferred from one individual to another, instead help or actions are transferred. Which in this case Zappos is offering the action of free shipping or returns.
Answer:
Georgia and Mississippi
Explanation:
In determining which state has the power to impose tax on JBT Food Services , We must first establish if there exist any nexus between the states and JBT Food Services. Nexus means connecting link between the tax payer and the tax jurisdiction. nexus can exist if a corporation has a production plant in a state or where the corporation frequently visit a state for business purpose. <em>You are can only pay sales tax in states where you have a nexus. </em>
JBT Food Services will pay tax in Georgia because it has production facility, it cannot pay in Alabama because it is only a transit point. The existence of distribution warehouse in Mississippi means there is a nexus between Mississippi and JBT Food Services
Answer:
break-even level of revenues increases from $2,890,625 to $3,500,000
Explanation:
Break even point is the level of sales at which the company makes neither a Profit nor a loss.
Break -even Sales revenue = Fixed Cost / Contribution Margin Ratio
<u>Old Break -even Sales revenue </u>
Break -even Sales revenue = ( $800,000 + $125,000)/(1.00-0.68)
= $925,000/ 0.32
= $2,890,625
<u>Old Break -even Sales revenue </u>
Break -even Sales revenue = ( $600,000 + $100,000)/(1.00-0.80)
= $700,000/ 0.20
= $3,500,000
Answer:
A new breakeven point will be determined.
Explanation:
The law of supply and demand suggests that price and quantity equilibrium are determined by the interaction between supply and demand. This breakeven point may vary as supply and demand change. When supply increases the price decreases and when the price decreases the demanded quantity increases. In this way, a new equilibrium price will be determined at a lower value than the previous price.