Answer:
Ans. C) 208 grandfather clocks to break even
Explanation:
Hi, First, let´s introduce the Break-even point (BEP) in units equation that we need to use.
Therefore, our solution has to look like this:
So, in order to break-even, this company has to sell 208 clocks each year.
Note. 208 was the value obtained when the answer was rounded to the nearest unit.
If you´d like to know how much is that in dollars, you just go ahead and multiply the price by 208 and you will get.
Best of luck.
Answer:
Mental accounting.
Explanation:
Mental accounting is the process by which people categorise, code, and evaluate economic outcomes of actions. It involves categorisation of expenses. This classification of funds can lead to irrational behaviour in spending and investment.
Money is valued based on personal and subjective criteria.
In this instance the grandma has classified the $50 as fun money because she won it playing Bingo. Even though she was saving for a rocking share she used the fun money to color her hair.
A price ceiling is the maximum price a company is allowed to charge for that good. This is intended to assist the consumers so that they would not have to be an insane amount for a product.
Answer:
c. $154,000 depreciation, $4,000 amortization
Explanation:
The basis of the rental real estate property = purchase price + closing costs (excluding the cost of mortgage points) = $150,000 + $4,000 = $154,000
You can amortize the cost of the closing points for a period equal to the length of the mortgage loan (or up to 30 years if the length of the loan is longer).