Answer:
(a)
Mathematical Equation for break-even
F = QP - QV
Where
F = fixed cost
Q = Break-even quantity
P = Selling price
V = Variable cost
F = Q ( P - V )
Q = F / ( P - V )
Q = $327,030 / ( $630 - $300 )
Q = $327,030 / $330
Q = 991 units
(b)
Contribution Margin = Price per unit - Variable cost per unit
Contribution Margin = $630 - $300 = $330
Break-even Point in Units = Fixed Cost / Contribution margin per unit
Break-even Point in Units = $327,030 / $330 = 991 units
Explanation:
Mathematical equation use the the break-even equation which represent the behavior of each element towards the break-even point.
Contribution per unit method use the contribution of each unit to calculate the break-even point.
Answer: A multiple product order
Explanation:
A multiple product order is an order by the regulating body (Federal Trade Commission) to curb and desist from deceptive advertising of not only the target product but all the products produced by a particular firm that is engaged in deceptive advertising. Such as in the case above, the order to CSI is not only to stop its false advertising of dirt remover but also other products produced by CSI
c. Number of jobs the economy has gained or lost.
Answer:
C. sanctioning financial transactions in advance in the future
Explanation:
Sanctioning a financial transaction means approving or authorizing a transaction to be executed. Requiring approval for financial transactions is one of the measures of internal control. Employees are required to seek approval from management or authorities before proceeding with transactions.
Richard should demand that he sanctions all transactions in advance. Through this measure, he will get details and explanations of financial transactions before they happen.
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