Answer:
$273,600
Explanation:
The selling price per unit is $160
Variable expense per unit is $70.40
Fixed expense per month is 153,216
Therefore the monthly breaking can be calculated as follows
CM ratio = 56%
=>56/100
= 0.56
= 153,216/0.56
= 273,600
Hence the monthly break even in monthly dollars sales is $273,600
Answer: Investors will generally view an increase in debt as a positive sign for the firm's value.(E)
Explanation:
Investors will generally view an increase or rise in debt as a positive sign of the value of the firm. Rational investors are likely to invest in a higher firm value provided the firm is all-equity financed.
High-growth firms that has future positive net present value projects most times tend to have high levels of debt.
Answer:
b. Nina will prefer L to M.
Explanation:
Convex utility of wealth indicates that an individual tends to be comfortable with taking risks.
A concave utility function shows an aversion for risk.
A mean preserving spread occurs when one variable has greater variance than another but they both have the same mean.
In the given scenario prospect L will have a greater variance than prospect M since it is a mean preserving spread.
Given Nina's risk taking preference she will most likely take prospect L that offers more variability over prospect M
Answer:
Prepare the journal entries for above accounts
Explanation:
1. Cash Dr.147,000
Sales Discount Dr.1,314
A/R Cr.148,314
2. Account Receivable Dr.5,620
Disallowance for Bad debts Cr.5,620
3. Allowance for Doubtful Accounts Dr.26,900
Account Receivable Cr.26,900
4. Bad Debts Expense Dr.26,900
Allowance for Doubtful Accounts Cr.26,900
Answer Sell to a jobber
Explanation:
The sales to a jobber will take of the burden of the expiry product away from you at a cost of $50,000.
This is better when compared to the option of selling it upfront which we Incurred a cost of $100,000 .
The worst is delivering to the customers whithin the exipiry period and risking the price of the whole product and negative busines relationship.
