Answer:
The cross-over point is about 22 computers.
Explanation:
Fixed cost, F = 0
Variable cost = $50
Option B
Fixed cost, F = $1,000
Variable cost, V = $5
Therefore,
Total cost = F + (n × V)
n = no of units
Option A
Total cost TC = 50n
Option B
Total cost TC = 1000 + 5n
We can calculate cross-over point by equalizing two options
:
50n = 1000 + 5n
45n = 1000
n = 22.2
The cross-over point is about 22 computers.
Answer:
Journal entry to record wages expense and wages payable
Explanation:
As the company incurred no cost related to these earnings for federal unemployment tax so it would be excluded from wages and salaries expense
Entry DEBIT CREDIT
Salaries and wages Expense $68,000
Social Security(FICA) $5,202
Federal income tax $14,700
State income tax $6,300
union dues $900
Salaries and wages payable $40,898
Answer:
16.22%
Explanation:
To calculate the annual coupon rate, you can use the following formula:
Coupon Rate= (Annual coupon payment/Par value of the bond)* 100%
Annual coupon payment= $1158.91*14%= 162.2
Par value of the bond= $1000
Coupon Rate= (162.2/1000)*100%
Coupon Rate=0.1622*100%
Coupon Rate= 16.22%
The annual coupon rate on this bond is 16.22%
If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.
<h3>What is a Contribution Margin?</h3>
The contribution margin can be expressed in gross income terms. After subtracting the variable element of the firm's expenditures, it indicates the extra money gained for each product sold.
The contribution margin is calculated by subtracting the selling price/unit from the variable cost/unit.
This metric displays how much a certain product adds to the company's total earnings. It displays the share of revenue that helps to pay the firm's fixed costs and gives one approach to illustrate the profit potential of a certain product supplied by a company.
Therefore, If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.
Learn more about contribution margin here:
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