Answer:
The inventory should be registered as $2000
Explanation:
The inventory should be registered by it is acquisition cost. Once sold Inventory will go down bt $2000 and COGS will rise by $2000
Answer: Company’s break-even point in unit sales is <em><u>3900 units</u></em>
Explanation:
Given :
Selling Price (SP) = $ 15.70
Variable expense per unit (VC) = $10.30
Fixed expense = $21,060
Now,
Contribution per unit = SP - VC = $15.70 - $10.30 = $5.40
Break-even point in unit sales is given as :
= 
= 21060/5.40
=3900 units
No because it would be handled in a more strictly manner or they would have too much control.