Answer:
$52.25 per unit
Explanation:
The computation of the selling price is shown below:
= (Unit production variable cost + unit selling variable cost) + {(Production fixed cost + selling fixed cost + Contribution margin) ÷ (annual sales units)}
= $34 + $4 + {($20,000+ $30,000 + $7,000) ÷ (4,000 units)}
= $38 + $14.25
= $52.25
We simply add the variable cost, contribution margin, and the fixed cost
Answer:
A. Shut down immediately, as the firm is not able to cover all of its variable costs.
Explanation:
Unfortunately, the company contribution is negative. Even at maximum revenue it cannot cover the variable cost needed to produce this revenue. Therefore, is not possible to make a gross profit to afford the rest of the cost. Currently, the company has their fixed cost and the loss from operations.
If it shut down, it will stop the loss from operations and only leave the fixed cost.
C is your answer C) master budget
Answer:
Please see the answers below:
Explanation:
(O+) a. Increase in accounts payable
(F-) b. Payment of dividends
(O-) c. Decrease in accrued liabilities
(F+) d. Issuance of common stock
(O-) e. Gain on sale of building
(O+) f. Loss on sale of land
(O+) g. Depreciation expense
(O-) h. Increase in inventory
(O+) i. Decrease in accounts receivable
(I-) j. Purchase of equipment
That statement is false.
WHAT ARE "OPERATING ASSETS"?
Operating assets are assets acquired for use of the ongoing operations of a business.
OPERATING ASSETS INCLUDE:
Inventory, accounts receivable, & fixed assets.
WHY IS IT FALSE?
This statement would've been correct up until this point: "but not any depreciable fixed assets."
