Answer:
$28,000
Explanation:
The computation of the break-even point in dollars amount is shown below:
Break-even point in dollars amount = Fixed expenses ÷ Contribution margin ratio
where,
Fixed expenses is $9,800
And, the contribution margin ratio
= (Selling price per unit - variable cost per unit) ÷ (Selling price per unit) × 100
= ($28 - $28 × 0.65) ÷ ($28) × 100
= ($28 - $18.2) ÷ ($28) × 100
= 35%
So, the Break-even point in dollars amount is
= $9,800 ÷ 35%
= $28,000
Answer:
6.75
Explanation:
Given that,
Gross sales = $150,000
Accounts receivable, beginning of year = $18,000
Sales = $135,000
Accounts receivable, end of year = $22,000
Average accounts receivables:
= (Beginning AR + Ending AR) ÷ 2
= ($18,000 + $22,000) ÷ 2
= $40,000 ÷ 2
= $20,000
Accounts receivable turnover:
= Sales ÷ Average accounts receivables
= $135,000 ÷ $20,000
= 6.75
Note: Accounts receivable, end of year is missing from the question. It is amounted to $22,000.
Complete/Correct Question:
An investor is analyzing a three-unit property by looking at its ability to produce future income. Which of the following would most likely be used to determine this value?
a. Effective gross income
b. Gross income multiplier
c. Gross rent multiplier
d. Potential gross income
Answer:
c, gross rent multiplier
Explanation:
Gross rent multiplier can be defined as the ratio of the price of a real estate investment to the annual income before the calculation of expenses.
It can simply be said to be the number of years it would take a property for pay for itself through rent collection.
Gross rent multiplier is very useful when deciding or trying to select properties to invest in to ensure that factors such as depreciation, periodical cost, etc affects the property/investment drastically.
in the case of the investor in the question above, gross rent multiplier will be used to determine what the future holds for the property.
Cheers
Answer:
When a company is using conventional costing methods, the costs are allocated based on volume so those products with a high volume will get a higher share of the costs.
When Activity-based costing is used however, costs are assigned more accurately which will lead to the actual products that are causing the costs incurring them instead of those high-volume products so it will appear as though overhead costs have shifted from high-volume products to low-volume products.
