Answer:
$200 persons
Explanation:
Total variable cost per person:
= Dinner (per person) + Favors and program (per person)
= $14 + $7
= $21
Total fixed cost:
= Band + Rental of ballroom + professional entertainment during intermission + Tickets and advertising
= $1,800 + $1,100 + $2,000 + $700
= $5,600
Price = $49
Contribution = Price - Total variable cost per person
= $49 - $21
= $28
1. Break-even point for the dinner-dance:
= Total fixed cost ÷ Contribution margin per unit
= $5,600 ÷ $28
= $200 persons
Answer:
In business there is something called sole proprietorship. Proprietor is another word for owner, so a sole proprietorship has a single owner. The owner is fully liable, or legally responsible, for all the business’s actions and any debt it incurs.The other kind of business organization is called a partnership. A partnership allows for two or more people to share ownership of a business. There are different kinds of partnerships. In a limited partnership (LP) only one of the partners has unlimited liability while the other partner or partners have limited liability for the company and limited control over business decisions as well. In a limited liability partnership (LLP), no partner is fully liable for the business’s debts, and partners are not responsible for the actions of one another. A limited Liability Company (LLC) protects the business’s owner or owners from personal liability in most situations. In the case of bankruptcy or a lawsuit, the owner doesn’t face personal risk. Their personal assets (property of value) are protected.Corporation: When a business is incorporated (structured as a corporation), it becomes a legal entity separate from the owner or owners. While it can be time-consuming and expensive to set up a corporation, this structure provides a business owner with the best protection against personal liability. Another advantage is that corporations can sell stocks, or shares, to raise funds.
Answer:
$51,200
Explanation:
Gross income computation includes all forms of income such as wages, rents, royalties, dividend etc. However, gifts and inheritances are not considered as a part of the gross income.
Therefore, Sandy's gross income consist of her salary, and the interest income
Sandy's Gross income = 50000 + 1200
= $51,200
The inheritance of her grandmother's estate and car gift are not included as a part of Sandy's gross income.
Answer:
Purchases= $26,550
Explanation:
Giving the following information:
Production:
January= 2,900 units
February= 3,600 units
Norton budgets $20 per unit for direct materials.
Beginning inventory raw materials= $38,650.
Desired ending inventory direct materials= 10% of the next month's direct materials needed for production.
To calculate the purchases of direct material, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 2,900*20 + (3,600*0.1)*20 - 38,650
Purchases= $26,550