Answer:
1. 0.5
2. $360,000
3. $25,500
Explanation:
The BEP which is the break even point is the point where the company's sales or revenue generated is equal to the cost incurred. As such, the BEP is the number of units that must be sold for the company to make neither a profit nor a loss.
Both sales and variable cost are dependent on the number of units sold.
The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.
CM Ratio
= 1500000/3000000
= 0.5
Break even point in $ = Fixed cost/ CM ratio
= $180,000/0.5
= $360,000
If the sales increase, the variable cost will also increase as both are dependent on the level of activity.
If sales increases by $51,000, number of units sold
= $51,000/$120
= 425
Increase in variable expense
= 425 * $60
= $25,500
Increase in net operating income
= $51,000 - $25,500
= $25,500
i not sure but cyclical makes more sense.
Inflation sometimes causes people to pay increasing capital gains tax than they ought to. When accounting for inflation, capital gains tax may rise if there was an increase in the real purchasing power of an asset when the value of the asset did not increase. If capital gains were adjusted in relation to inflation, the tax would be a zero value.
Answer:
May
Dr Work in Process $35,500
Cr Wages Payable $35,500
Explanation:
Preparation of the Journal entry to record the flow of labor costs into production during May
Based on the information given the Journal entry to record the flow of labor costs into production during May will be :
May
Dr Work in Process $35,500
Cr Wages Payable $35,500
Calculated as:
Labor costs = (740*20)+(900*23)
Labor costs=14,800+20,700
Labor costs=$35,500
Answer:
Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is ―meeting needs profitably
Market needs inform organizations about what products develop, for what customers, at what cost, through which distribution channels, reducing the uncertainty that a new product/service development always brings.
