<u>Solution:</u>
The price per variable unit is set at 1.5 times the cost; the VC / unit is estimated at $2.50.
Price = 2.5 * 2.50 = $6.25
Variable cost = $2.50
Fixed cost = $220,000
Break-Even Volume = Fixed cost / (Price - Variable cost)
= $220.000 / (6.25 - 2.50)
Break-Even Volume = 58,667 units
Answer:
Please see the naswer below
Explanation:
Activity-based costing ABC is a method for assigning costs to products, services projects, tasks, or acquisitions, based on the Activities that go into them and the Resources consumed by these activities. Following is the proper order of tasks in an ABC system
1. Identify the primary activities and estimate a total cost pool for each.
2.Select an allocation base for each activity.
3.Calculate an activity cost allocation rate for each activity.
4. Allocate the costs to the cost object using the activity cost allocation rates.
Answer:
The advertising spend would reduce income taxes by $2.8 million
Explanation:
The advertising expense since it is allowable expense from profits made in the year would reduce income taxes next year by $2.8 million ($8 million *35%)
This means that because of its tax deductibility,it would make a business sense to incur the advertising cost of $8 million coupled with the fact the it has the potential to increase sales revenue over and above the current level of $280 million
Answer:
Which marketing management philosophy focuses on the question, "What do customers want and need?" -do research on its customers, competitors, and markets. -establish and maintain mutually satisfying relationships with customers.
Answer:
Journal entry recording the interest
Debit Credit
Interest Expense $7,350
Cash $7,000
Interest Payable $350
As $7,000 is paid from the total expense of $7,350. Remaining interest of $350 is recorded as liability in interest payable account.
