Answer:
$235,000
Explanation:
The computation fo the safety margin is shown below:
As we know that
Margin of safety = Expected sales - break even sales
where,
Expected sales is
= 29,000 units × $50
= $1,450,000
And, the break even sales is
= Fixed cost ÷ contribution margin per unit
= $486,000 ÷ ($50 - $50 × 0.60)
= $486,000 ÷ $20
= 24,300 units
And, the selling price is $50
So the break even sales is
= 24,300 units × $50
= $1,215,000
So, the safety margin is
= $1,450,000 - $1,215,000
= $235,000
Answer:
$1,545,000
Explanation:
The formula to compute the cost of the building equal to
Rate of return = (Rental income - expenses) ÷ (cost of building
)
where,
Rate of return = 8%
Rental income equals to
= ($600 × 4 units + $750 × 4 units + $725 × 4 units + $800 × 4 units) × 12 months
= $138,000
Total expense
= $1,200 × 12 month
= $14,400
Now the cost of building would be
8% = ($138,000 - $14,400) ÷ (cost of building
)
8% = $123,600
So, the cost of building equal to $1,545,000
Answer:
Yes, it is<u> true</u> that If the performance obligation is not highly dependent on, or interrelated with, other promises in the contract, then each performance obligation should be accounted for separately.
Explanation:
A performance obligation exists when an entity provides a distinct product or service.
It is a promise to provide a “distinct” good or service to a customer.
When there are multiple promises in a contract, companies will need to determine whether those goods or services are distinct, and therefore separate performance obligations for to avoid ambiguity.
Performance obligations in each contract can be identified by a company by first considering whether or not the goods or services are distinct.
If distinct, a customer can benefit from the good or service on its own because the good or service is separable from the other goods or services in a contract.
Sufficient products to meet consumer wants
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