Answer:
Evan's business has no credit history.
Explanation:
As Evan has just created the company, it has no record about its ability to pay debt which is important for a bank to give a loan and it will not be willing to approve it if the company has no credit history that shows that it can make the payments. Because of that, it will require Evan to assume personal liability in order to have a guarantee that the loan would be paid back.
Answer:
Option A $25000
Explanation:
The breakeven point in sales dollars can be calculated by using the following formula:
Breakeven Sales In Dollars = Fixed Cost / Contribution Margin ratio
The fixed cost here is $14000 and the contribution margin ratio is 0.56.
So by putting the values, we have:
Breakeven Sales In Dollars = $14000 / 0.56 = $25000
So the sales required to breakeven at a contribution margin of 0.56 is $25000. Remember that Fixed cost though remains the same but contribution margin ratio changes when the variable cost or selling price changes. So if the changes in variable cost or selling prices are witnessed to achieve the maximum profit possible, then the managers must recalculate the breakeven point because it has been altered due to these changes.
The current or checking account typically has very high liquidity, low or no interest, and low minimum balance. The current or checking account usually used for the daily transaction and they have a similar trait like the e-cash<span>. The current or checking account is one of three types of the bank deposit account.</span>
Answer:
Total overhead= $39,900
Explanation:
Giving the following information:
Variable manufacturing overhead $1.90
<u>First, we need to calculate the total fixed overhead:</u>
Total fixed overhead= 7,800*3.8
Total fixed overhead= $29,640
<u>Now, the total overhead for 5,400 units:</u>
Total variable overhead= 1.9*5,400= 10,260
Total fixed overhead= 29,640
Total overhead= $39,900
