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3 years ago

If sales units exceeds the break-even point in units, the firm will experience

Business

1 answer:

BigorU [14]3 years ago

8 0

Answer:

an operating profit

Explanation:

$\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

Where:

$\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio$

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

The sales, after variable cost, generate a contribution, this contribution in relationship with sales can be measure as a ratio.

And this ratio applied to fixed cost get us the sales level at which the company can aford both, their fixed cost and variable cost.

<u>Resuming:</u>

The break even is the sales level which generate enough contribution to pay up the fixed cost and the variable cost generated for the sales.

If sales are higher than BEP then it will pay their variable and fixed cost and also make a profit.

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Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2

Aleonysh [2.5K]

Answer:

The following entries will be made on July 10

Explanation:

Account Receivable Dr.$2,000

Bad debt Expense Cr.$2,000

Bank Dr.$2,000

Account Receivable Cr.$2,000

Firstly the writ off made on May 3, was reinstated as the amount is collected then in second entry, we recorded collection of cash from A. Hopkins.

7 0

4 years ago

5 dimensions of job satisfaction

Elenna [48]

Pay/type of work/promotion opportunities/supervision/coworkers

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3 years ago

When a pharmaceutical company introduces a new drug, its research and development costs are ______, and the cost of the chemical

Illusion [34]

Answer:

Start-up cost; variable cost

Explanation:

Start-up cost is the cost incurred in developing a new product. It is a one time cost that is incurred only at the time of creating something new. Start-up cost includes borrowing cost, research and development cost and expenses incurred on technology.

Variable costs change with the change in units of output produced. Cost of chemicals depend on the amount of drugs produced. So, research and development cost is start-up cost and cost of chemical is variable cost.

3 0

3 years ago

In the Common Criteria, the common set of functional and assurance requirements for a category of vendor products deployed in a

Daniel [21]

Answer:

protection profiles.

Explanation:

Common Criteria can be defined as an international set of guidelines and specifications which are designed and developed for the evaluation of an information security product, in order to ensure that they meet an agreed-upon and specific security standard for general use by the public. It comprises of two (2) key components: Evaluation assurance level and protection profiles.

In the Common Criteria, the common set of functional and assurance requirements for a category of vendor products deployed in a particular type of environment are known as protection profiles.

5 0

3 years ago

Angelo Company reacquired 26,000 shares of its common stock for $16 per share on June 1. On July 1 they sold 7,000 treasury shar

aev [14]

Answer:

$22,000 Credit balance

Explanation:

Calculation to determine the ending balance

First step is prepare the Journal entries

Dr Treasury stock $416,000

Cr Cash $416,000

(26,000 shares*$16 per share)

Dr Cash $161,000

(7,000*$23)

Cr Teasury stock $112,000

($16 per *7,000)

Cr Additional Paid-in Capital $49,000

($161,000-$112,000)

Dr Cash $117,000

(9,000*$13)

Dr Additional Paid-in Capital $27,000

($144,000-$117,000)

Cr Teasury stock $144,000

($16*9,000)

Now let calculate the Ending balance

Ending balance=-$49,000+$27,000

Ending balance=-$22,000 Credit balance

Therefore the Ending balance is $22,000 Credit balance

4 0

3 years ago