Answer:
The economic value establish in this case is $450
Explanation:
Economic value is the term which is defined as the computation of the profits an asset has either manufactured or might produce in the future. It is that measure of the product or service benefit provide the economic agent.
For computing the economic value as:
EV (Economic value) = (Actual rate of return - Cost of Capital) × Net Investment
where
Actual rate of return is $800
Cost of capital is $350
Net Investment is nil
Putting the values above:
EV = $800 - $350
EV = $450
Answer:
Break-even point= 7,900 new costumers
Explanation:
Giving the following information:
Assume that during a recent fiscal year, one outlet spent $1,659,000 on a promotional campaign for its website that offered two free months of service for new subscribers.
In addition, assume the following information: Number of months an average new customer stays with the service (including the two free months) 22 months Revenue per month per customer subscription $16 Variable cost per month per customer subscription $5.
Break-even point= fixed costs/ contribution margin
Fixed costs= 1,659,000
Contribution margin= (16*20)-(5*22)= 210
Break-even point= 1,659,000/210= 7,900 new costumers
The journal entry required to close the Drawing account is debit to Income Summary account and a credit to Drawing account.
Option a) is correct.
<h2>What is Income Summary account ?</h2>
An income summary is a temporary account that is used to net the closing entries from all the revenue and expense accounts at the conclusion of the accounting quarter. The final balance is regarded as a gain or loss. The company made a profit for that year if the net balance of the income summary is a credit balance, and a loss for that year if the net balance is a debit balance.
It lists all earnings and costs related to both operational and non-operating operations. It is also known as a revenue and expense summary as a result.
Learn more about Income summary Accounts here:
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need to solve the equation 150=-6x2+100x-180. you can subtract 150 from both sides and use the quadratic formula to find x=4.53 and 12.13. this means that if the store sells soccer balls for 4.53$ or 12.13$ it will earn a daily profit of 150$
