Answer:
No impairment loss would be reported
Explanation:
The computation is shown below;
Impairment loss = carrying value - recoverable amount
Where,
The recoverable amount would be the higher amount of fair market value and value in use
So the recoverable amount would be $2,545,000
Now the impairment loss is
= $2,500,000 - $2,545,000
= -$45,000
Since the impairment loss comes in negative so no impairment would be recorded
If sales volume increases and all other factors remain constant, then the Margin of safety will increase
Explanation:
The margin for safety (MOS) is described as an overall excess of current or expected revenue, expressed either in terms of currency or in units, or as a percentage of total revenues.
One of the main ways to increase the safety margin is through increasing the gross value per unit (if business conditions are favourable) and by reducing the variable cost per unit of the good. This can be accomplished by rising selling costs.
Answer:
The correct answer is (A)
Explanation:
Commercial finance is another way to generate funds, but they come with certain drawbacks compared to commercial banks. Commercial finance usually give loans to customers who are interested in more risky investments. The interest they charge is usually higher which can only be paid if a client invests in riskier investments to earn higher returns.
Answer:
$2.25
Explanation:
sale volume of company = 30,000 unit
total fixed cost are = $30,000
total variable cost $45,000 for 30,000 unit
1 unit = 45000/30000 = $ 1 . 5
for the sale of 40,000 unit
the total expected cost
= Fixed cost + Variable cost
= $30,000 + 40,000×$1.50
= $30,000+$60,000
= $90,000
Cost per unit:
= $90,000/40,000
= $2.25
The answer is $809. There are 52 weeks in a year, so $42,068/52 = $809.
