Answer: The break-even point is 66 units.
Explanation:
The break-even point can be found by dividing total fixed costs by the difference between selling price and variable cost.
(fixed cost) / (sale price - variable cost)
1980 / (50 - 20) = 66 units
Salt & Battery must sell 66 units of product before breaking even.
Answer:
Indicating whether the expenditure should be capitalized or expensed in the period incurred:
a. Improvement = capitalized
b. Replacement of a minor broken part on a machine = expensed
c. Expenditure that increases the useful life of an existing asset = capitalized.
Explanation:
The expectation of costs producing an economic benefit beyond the current year or within the normal course of an operating cycle determines whether to capitalize or expense the costs. When an item of expenditure is capitalized, it means that the expense recognition is delayed. When the cost is expensed, it is treated as an expense in the income statement, whereas a capitalized cost is taken to the balance sheet, with only the depreciation expense portion recognized as expense for the period.
Answer:
a) $22,010
b) $3,780
c) $25,790
Explanation:
a) In calculating the value of inventory still left, the total value needs to be calculated first,
= (80 freezers * $540) + $820 ( transport fees)
= 43,200 + 820
= $44,020
40 out of 80 freezers have not been sold so,
= 40/80 * 44,020
= $22,010
b) In calculating the profit, subtract the expenses from the sales
Sales = 40 * 700
= $28,000
= 28,000 - Cost of refrigerators - commission of 6% of sales - advertising - installation
= 28,000 - 22,010 - (28,000*0.06) - 180 - 350
= $3,780
c) The amount remitted by the consignor will be,
= Sales - commission - advertising - installation
= 28,000 - (28,000 * 0.06) - 180 - 350
= $25,790
Answer:
The correct answer is A) geographic organization
.
Explanation:
A geographic organization of a corporation is a structure that is used more than anything else in the sales area, and where it seeks to massify and maximize the process of insertion and sale of a product taking into account the characteristics of each country. Experts with international experience are generally hired within this distribution, which allows for a more or less successful process, but not before carefully studying the market in order to achieve the proposed objectives.
