The expected value for the number of cars with defects can
be obtained by multiplying the probability of success (i.e. the percentage of
products with defects - 40%) by the number of cases (i.e. the number of cars
purchased – 5).
40 / 100 X 5 = 2
Therefore, the expected value for the number of cars with
defects will be the percentage of products with defects is 2
Answer:
Break-even point in units= 1,500
Explanation:
Giving the following information:
Selling price= $600
Unitary variable cost= $420
Fixed cost= $270,000
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 270,000 / (600 - 420)
Break-even point in units= 1,500
Answer:
It will reduce the amount of dividiends it can pay.
Explanation:
As there is an amount of the retained earnings that is restricted the company cannot use them to pay up neither stock or cash dividends in the future.
The retained earnings are used to pay dividends but also, are part of the equity of the firm thus the RE count to the capital structure of the company . Loans can be obtained with better rates if thecapital structure is more based on equiy than in liabilities thus, the board of directors is planning ahead the future plant exansion avoiding to use cash and deteriorate his capital structure to pay up dividends.
Answer:
Dr Work in process $13,210
Cr Wages payable $13,210
Explanation:
Based on the information given the appropriate journal entry to record the flow of labor costs into production during August is:
Dr Work in process $13,210
Cr Wages payable $13,210
(580*$13)+(630*$9)
($7540+$5670)
(To record the flow of labor costs into production during August)
The factors of production will influence an items' Availability.
