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vladimir2022 [97]
3 years ago
13

Herb Company manufactured more product than it was able to sell during the current year. If the salaries of the sales staff of H

erb Company are improperly recorded as a product cost, what will be the likely effect on net income of the period in which the error occurs?
Business
1 answer:
beks73 [17]3 years ago
5 0

Answer: the net income Wii b grossly overstated

Explanation:

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B. reduced the price elasticity of demand for its products

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Target Profit Beard Company sells a product for $15 per unit. The variable cost is 10 per unit, and fixed costs are 1,750,000. D
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Answer:

a. Break-even point in sales units = 350,000 units

b. Break- even point in sales units to achieve a target profit of $400,000 = 430,000 units

Explanation:

a. Break-even point in sales units = Fixed cost ÷ Contribution margin per unit

= $1,750,000 ÷ $5

= 350,000 units

Working note:- Contribution margin = $15 - $10 = $5

b. Break- even point in sales units to achieve a target profit of $400,000 = fixed cost + Targeted profit ÷ Contribution margin per unit

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= $2,150,000 ÷ $5

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8 0
3 years ago
2. The Fourth of July Company agreed to ship a quantity of fireworks to Behan. After Behan pays in full, he learns that state la
earnstyle [38]

Answer:

Behan will recover his amount.

Explanation:

The contract has not been formed as the contract is only enforceable if the contract is legally allowed which means that the selling of fireworks in this case scenario is not allowed and hence Behan and Fourth of July Company are both equally responsible for not committing to such type of agreements. So the company must payback the money as the contract is not enforceable in the jurisdiction.

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