Answer:
(1) 1,400 units
(2) $21,000
Explanation:
Given that,
Selling price = $15 per unit
Variable expense = $12 per unit
Fixed expense = $4,200
Contribution margin per unit:
= Selling price - Variable expense
= $15 - $12
= $3
Contribution margin ratio
:
= Contribution margin per unit ÷ Selling price per unit
= $3 ÷ $15
= 0.2 or 20%
1. Break even point:
= Fixed expense ÷ Contribution margin per unit
= $4,200 ÷ $3
= 1,400 units
2. Break even point in dollar sales:
= Fixed expenses ÷ Contribution margin ratio
= $4,200 ÷ 20%
= $21,000
Answer:
The accounts receivable turnover is computed by dividing <u>net sales by average net receivables.</u>
Explanation:
The accounts receivable turnover is used to quantify a company's effectiveness in collecting its receivables from its clients.
Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable
A high receivables turnover ratio can indicate that a company’s collection of accounts receivable is efficient and a low receivables turnover ratio might be due to a company having a poor collection process.
Answer:
Event Classification
1. Asset Source
2. Asset Use
3. Asset Use
4. Asset Source
5. Asset Exchange
6. Not applicable (NA)
7. Asset Source
8. Asset Use
9. Asset Source
10. Asset Exchange
11. Asset Source
Explanation:
An asset is an economic resources controlled by an entity from which future economic benefits are expected.
In recording asset, business events can result in asset source,asset use and asset exchange. Asset source is the acquisition of asset, asset use is consumption of existing asset and asset exchange is the transfer of asset from one source to another.
Answer: Success metrics
Explanation:
The indicators that can be traced after the product has been launched to view if it meets product goals and user requirements are referred to as the success metrics.
Success metric indicators are used toesure success based on a predetermined target. They are simply the scorecard of a company's marketing program.
Answer:
Cash flow analysis, is the right answer.
Explanation:
“Cash flow analysis” is the method that determined the actual cash that goes out of the business and the actual cash that comes in the business. Basically this method is used for financial purposes. This method exhibits the actual cost that the business has incurred and the actual benefit it has earned. Moreover, new investors that invest in the company primarily sees the financial report of the company and then take the decision to invest.