Answer:
$52,267
Explanation:
Calculation to determine the break-even level of earnings before interest and taxes between these two options
EBIT/40,000 = [EBIT- ($280,000 ×0.07)]/25,000
EBIT/40,000 = [EBIT - ($19,600)]/25,000
Cross multiply
25,000EBIT=40,000(EBIT-19,600)
25,000EBIT=40,000EBIT-784,000,000
EBIT = $52,267
Therefore the break-even level of earnings before interest and taxes between these two options is $52,267
Answer:
Explanation:
The following statement is false and true
1. Indirect costs are traced to cost objects - This statement is false because it is not directly traced to the cost objectives. It is traced through the cost drivers.
2. Yes, this statement is true because the cost drivers are used to allocate the indirect cost to their cost objects
3. Yes, this statement is true because for computing the allocation rate, we have to divide the total allocation cost to its allocation base
4. Yes, this statement is true because the cost drivers play very important for cost allocation. Without cost drivers, the allocation of the cost would not be possible
5. This statement is false because depreciation should be allocated based on its useful life rather than the number of square feet because the number of square feet occupied is used to allocate the renting cost
Answer:
A. inelastic
Explanation:
Inelastic demand is when people buy about same amount whether price drops or rises.
Even with the higher changes in the prices in the cinema, there is not considerable impact on Movie going audience. Also, addition to it, people go to cinemas at evening and weekend shows more than daytime shows or weekday shows even the tickets have price higher.
<u>This shows that the inelastic nature of movie ticket demand.</u>
Answer:
Survival
Explanation:
One of the main goals or objectives of a business today is to survive. Survival as a goal can be as a result of legislation or business and environmental demands.
Survival is the ability of an organisation to maintain its share of the maket, competitveness as well as its earning capacity.
Other organisational objectives include: Growth and diversification, stability, organisational efficiency, prestige and recognition.
For an organisation to survive, it must strive to be different, positively different and this will include compliance to legislation (as stated in the question), continous market (SWOT) analysis and execution of new plans. This strategies will require if the need be, investment in new equipment, assets or even the training and recruitment of worker.
Answer:
The sales budget
Jefferson Sports Medicine, Inc budgets sales budget (Amounts in $)
Months
Physical examination July August September Total
Basic physical 13,200 14,100 6,300 33,600
Extended physical 25,650 27,000 14,850 <u>67,500</u>
<u> 101,100 </u>
Explanation:
The sales expense shows the forecasted of sales from the various types of physical examination for a given period. These include the sales expected from Physical examination. The sales are the products of the charge per examination and the number of examinations conducted. It may be computed as follows;
July;
Physical examination
= $60 * 220
= $13,200
Extended physical
= $135 * 190
= $25,650
August
= $60 * 235
= $14,100
Extended physical
= $135 * 200
= $27,000
September
= $60 * 105
= $6,300
Extended physical
= $135 * 110
= $14,850
