Answer:
$729
Explanation:
We can calculate the actual cost value by first multiplying the purchase value by the depreciation rate and after that deducting that amount from the replacement cost.
DATA
Replacement value = $1,200
Purchase value = $942
Depreciation rate = 3 years/6 years = 0.5
Solution
Acutal cost value = Replacement value - ( Purchase value x Depreciation rate)
Acutal cost value = $1200 - ($942 x 0.5)
Acutal cost value = $729
Spending analysis would use data to analyze purchasing data.
Answer:
BEP in units is 25 units, and B) 50 units.
Explanation:
The formula for Break even point is Fixed costs / Contribution per unit or total contribution.
In the following scenario the contribution per unit is $1000 - $600 = $400.
The fixed costs are $10000. Thus the Break even point in units will be 10000/400 = 25 units.
If the selling price drops by 20%, the contribution will now be $200. (200 dollars less due to the 20% drop).
The break even point will now be;
10000/200 = 50 units