The right answer for the question that is being asked and shown above is that: "TRUE."Almost every phase of business and economic activity falls under some form of government regulation. This statement is true as far as the phase of business and economic activity is concerned.
Answer:
Explanation:
Last year Current year
Selling Price 10 10
Varaible Price 5 6
Contribution Margin 5 4
Break even is the point where total cost is equal to total revenue mean no profit and loss.
company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.
Break Even using FIFO method : first In first out system
Fix Cost = 86000
contribution from opening units(6000*5) = 30000
Remaining Fix cost that should be Covered from
current year products = 56000
Units to be sold for break-even ( 56000/4) = 14000
so we have break even units 6000+14000 = 20000
Fix cost = -86000
Opening 6000*5 = 30000
Current 14000*4 = 56000
Profit = 0
Break Even using LIFO method : Last in first out
Fix Cost = 86000
Break even = Fix Cost / Contribution margin
Break even = 86000/4 =21500
current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.
It is false that the market rate is used to calculate the actual cash payments made to bondholders rather it is the economic price for goods and services that is offered for them in free market or market place. It is also called a going rate, the market value or market price are equal only under conditions of market equilibrium and rational expectation.
