Answer:
The Break Even Point is the Sales Value that will cover the cost of production. Meaning the Sales Value that will bring profitability to Zero
Break Even sales for Company wide = $378,000
Break Even Value for Chicago is $111,429
And Break Even Value for Minneapolis is $120,000
The Addition of both Outlets/Offices Break Even Sales is less than the Company-wide because the Offices don't share in the Common Fixed Expense as these are specific to Group reporting.
Explanation:
Answer:
d.the levels of activity for non-unit based cost drivers remain the same.
Explanation:
In the case of conventional and activity based costing calculations, the output should be similar to the activity levels that belong to the non-unit in which the cost driver should remain the same
Thus as per the given scenario, the option d is correct
And, the rest of the options seems incorrect
<span>On Monday, during which time I am presenting to a group of highly accomplished scientists, my presentation will be far more technical and detailed. On Tuesday, when I am presenting to the company's marketing and promotions department, all of these technical details will be scrapped and I will be presenting very broad ideas. If I am presenting on a new method of administering blood tests, I will talk on Monday about the methods that I am using, however; on Tuesday, I will talk about the benefit to the patients and to the hospital.</span>
Answer:
The answer is letter "D": Estimate the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods.
Explanation:
There are five steps for revenue recognition established by the Financial Accounting Standards Board (<em>FASB</em>) which are: <em>Identifying the contract with a customer; Identifying the performance obligations in the contract; Determining the transaction price; Allocating the prices to the performance obligations </em>and<em>; Recognizing revenue.</em>
In that sense, estimating the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods has nothing to do with it.
Answer:
The correct answer is option D.
Explanation:
Microbrewery beer is a normal good. Its prices have increased recently in recent years. The prices for fermenting vats used in beer have also risen and the consumer income has fallen.
Since beer is a normal good an increase in its price and decrease in the consumer income will decrease its demand. As a result, the demand curve will move to the left, decreasing the price of the product.
At the same time, the increase in the price of fermenting vats will increase the cost of producing beer. This will cause the supply of beer to decrease.
This will cause the supply curve to shift to the left. If the leftward shift in the supply curve is more than the leftward shift in demand, the price of beer will increase.
