Answer:
e) $4,651
Explanation:
The break-even point is the level of activity that a company must operate to have its total cost equal to its total revenue. At this level of activity, the business makes a zero profit, as the total contribution is exactly the same as the total fixed cost.
It is important for the business to have an idea of the number of customers or units of product to sell inorder for it to cover its total fixed cost. This is the information the break-point analysis seeks to provide.
Working it out
Break-point in sales = Total General fixed cost/ Contribution margin ratio
Contribution margin ratio (CMR): Contribution is sales less variable costs. And the contribution margin ratio is the proportion of sales that is earned as contribution. The higher the better.
CMR = contribution/sales
Fixed cost = Contribution + net loss
We can now apply all these relationships to the question given:
Fixed cost = 1720 + 280
= 4,000
Contribution margin ratio = 1720/400 = 43%
Break-even sales ($) = 4000/0.43
= $4,651
Answer:
$221,100
Explanation:
Given that,
Book value of equipment = $65,300
Sold at a loss = $14,000
Purchase of a new truck = $89,000
Sale of land = $198,000
Sale of Long term investment = $60,800
Cash flows from investing activities:
= Sale of Equipment - Purchase of a new truck + Sale of land + Sale of Long term investment
= ($65,300 - $14,000) - $89,000 + $198,000 + $60,800
= $51,300 - $89,000 + $198,000 + $60,800
= $221,100
Independance. a sovereign state is one who has a permanent population, a defined territory, a government and so on.
Answer:
The action of opportunity cost is that is the subjective measurement which could be determined only through the individual, who selects the action.
Explanation:
Opportunity cost is the cost or an expense or the value of the next best possible thing which the person or an individual gave up whenever make or take a decision.
In short, it is the loss of the gain that is potential from the other alternatives which are available when an individual or person selects the alternative.
Therefore, the action of the opportunity cost is the cost which is the subjective measure, that could be determined only through individual, who selects the action.
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Not necessarily. Sure, there are some things where it is very clear what is right and wrong but there are so many situations where it is hard to differentiate between what is right and what isn't.
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