Answer:
Please see answers below
Explanation:
A. For break even point
= fixed expenses - Contribution margin per unit
Where,
Contribution margin per unit = Sales per unit - Variable cost per unit
= $11 - $4
= $7
Therefore,
Break even points in unit = $58,800 ÷ $7
= 8,400 pizzas
B. Target profit
The break even point = Fixed costs expenses + Target profit / Contribution margin per unit
= ($58,800 + $54,000) / $7
= $112,800 / $7
= 16,114 pizzas
C. Margin of safety in dollars
= (Total sales - Break even in sales) * Selling price per unit
= ( 9,900 - 8,400 ) * $11
= 1,500 * $11
= $16,500
D. Contribution margin in lay man's term.
Contribution margin is when a firm makes or produces a product and then sold it, the difference that is left after deducting variable costs(costs associated with the sales like cost of raw materials used in producing the product) from the the sales of such product is the contribution margin.
Answer:
total cost to be accounted = $294,000
Explanation:
Work in Process
Beginning value of WIP = $24,000
Ending value of WIP = $13,000
Cost added to production = $283,000
Cost to be accounted for = Beginning value of WIP + Cost added to production - Ending value of WIP
Cost to be accounted for = $24,000 + $283,000 - $13,000 = $294,000
Answer:
False
Explanation:
Purchasing power is related to real income and not to nominal income. Even though workers had a $10 increase in their average nominal income, due to the effects of inflation, that increase does not necessarily reflect an improve in purchasing power.
The statement is false.
Answer:
a.$121,375
Explanation:
Increase in account receivable means there is more credit sales were made during the year than the cash received from the customers. So, cash will be used in the period by account recivables.
According to indirect method cash flow will be adjusted as follows
Net Income $143,124
Net Increase in Rceivables ($21,749)
( $67,072 - $45,323) <u> </u>
Cash Flow from Operating Activites <u> $121,375</u>
