Answer:
If both companies have the sames sales volume, total costs and income from operations, the reason why Gouda has a lower break even point is that their variable costs are lower. We use the contribution margin per unit to calculate the break even point and the contribution margin per unit = sales price - variable costs. The question states that total costs are equal, but it doesn't say anything about variable or fixed costs.
Assuming that Gouda is above break even point, each sale will generate a higher operating profit since the contribution margin is higher.
Explanation:
Answer:
The correct answer is letter "B": the purchase of new capital.
Explanation:
In macroeconomics, an investment is a capital that has been acquired with the intention that it will produce income or interest over time. Popular investments include <em>stocks, bonds, real estate, mutual funds </em>and<em>, </em>to a lesser degree<em>, commodities, annuities, and options.
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Many investments trade on the open market every day. Global events and company results will cause the price of the investment to rise or fall.
Answer:
Adjusting entry the company made to record its estimated bad debts expense:
Bad Debts Expense 29,300
Allowance for Doubtful Accounts 29,300
Explanation:
The company uses the aging of receivable method to estimate uncollectible.
Estimated uncollectible would be $28,500
Before year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $800
Bad debts expense = $28,500 + $800 = $29,300
Adjusting entry the company made to record its estimated bad debts expense:
Bad Debts Expense 29,300
Allowance for Doubtful Accounts 29,300
Answer:
17%
Explanation:
This can be calculated using the Capital Asset Pricing Model which is given as under:
Required Return = Rf + Beta factor * (Market Risk Premium)
By putting the values, we have:
Required Return = 5% + 1.2 * 10% = 17%
Disney need to earn 17% return on investment to trigger a Lego investment.
Certificates of deposit exist as funds that the bank keeps on hand that exists not loaned out or invested in bonds.
<h3>What are certificates of deposits?</h3>
Unsecured negotiable promissory notes, or certificates of deposit (CDs), are frequently issued by commercial banks and other financial organizations.
A certificate of deposit (CD) is a type of savings account where the issuing bank pays interest in exchange for holding a specified sum of money for a predetermined length of time, such as six months, a year, or five years. You will receive the amount you initially invested plus any interest when you cash in or redeem your CD.
Bonds and certificates of deposit (CDs) are comparable but not the same. Both of these securities are fixed-income investments that the holder keeps until the due dates. Investors invest money in bonds or CDs for a predetermined amount of time, and when that time expires, they receive their money back.
To learn more about certificate of deposit refer to:
brainly.com/question/1874937
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