Answer:
The answer is: The break even level increases in 50 units.
Explanation:
First we calculate the break even point without the increase in variable costs:
Break even point = fixed costs / contribution margin per unit
= $4,500 / ($20 - $10) = 450 units
Then we calculate the new break even point with the increase in variable costs:
New break even point = $4,500 / ($20 - $11) = 500 units
The difference between the new and old break even points is:
= 500 units - 450 units = 50 units
This may not be the exact answer, dear friend, but read the explanation, and you should be able to fill in the blanks...
The consumer price index is an average of the prices of the goods and services purchased by the typical urban family of four,
whereas the producer price index is an average of the prices received by producers of goods and services at all stages of the production process.
Answer:
Preemptive right
Explanation:
The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a <u>Preemptive right.</u> A preemptive right grants right to existing shareholders to buy some proportion of new shares at a price lower than market price
Answer:
General Journal entry:
Account Debit Credit
Amortization expense $6,750
Accumulated Amortization $6,750
(patent)
Explanation:
Given Data:
Price of patent=$38,500
Legal fees=$2,000
legal Life=13 years
useful life=6 years
Required:
Journal Entry
Solution:
Amortization:
For intangible assets, amortization is the decrease in book value over the period of time. However intangible assets have no physical appearance and they do not face any damage like fixed assets but with the passage of time their value decrease.
Calculating amortization expense for one year:
Amortization expense=
General Journal entry:
Account Debit Credit
Amortization expense $6,750
Accumulated Amortization $6,750
(patent)
If you are looking for the adjusting entry at the end of the year, it would be:
Office Supplies Expense 5000 Office Supplies 5000
The amount to be recorded is 5000 because:
Beginning supplies is $240
Then there is an additional supplies $5,200
So there is a total of 5,440 supplies.
But the ending inventory is $440.
Deduct the $440 from the $5440 which will give us $5,000. This is to make sure that the amount in the journal entry at the end of the year will be same with the physical count of the supplies.
