Answer:
b. 51,429 units
Explanation:
If x = Number of units
Net Income = Sales Revenue - Variable Cost - Fixed Cost
or
Net Income = Contribution Margin - Fixed Cost
where,
Net Income = $80,000
Contribution Margin per unit = $3.50
Fixed Cost = $100,000
Contribution Margin = Net Income + Fixed Cost
$3.50x = $80,000 + $100,000
$3.50x = $180,000
Dividing the above equation by $3.50 we get
x = $180,000 / $3.50
x = 51,429 units
Hence 51,429 number of units must be sold to generate the net income of $80,000.
Answer: A. The other asset group should be tested for an impairment loss before goodwill is tested.
Explanation:
According to the IFRS standards, it is important and necessary to revalue your assets according to their net realizable value, i.e, assets should be reported after deducting accumulated depreciation or amortization in the case of goodwill. In the case of inventory, NRV should be calculated by estimating impairments.
The other asset groups are tested to check for impairment loss and later the goodwill is tested.
1) Has he diversified his portfolio within the 11 sectors?
2) Does he go for capital appreciation stocks or dividend stocks?
3) How much time does he spend studying a company's financials (10K form) and charts?
4) Who is his favorite investor? Warren Buffet for picking great stocks and holding for many many years or someone like Bill Ackman who is a bit deceptive on his trading tactics (over the summer he said 'Hell is coming' a signal thought by many as "panic sell" whilst he was buying heavily)
5) What is the number he is seeking to retire? There's usually a number ranging from $1M and $200M.
6) Maybe ask him if he is seeking to get licensed as a CMT (reading chart patterns)?
Hope this helps, either way best of luck to him!
Answer: $8,400
Explanation:
Given the following:
Amount repaid each month = $150
Number of Periods for which amount was paid = 10 months
Amount left after 10 months payment = $6900
Harry's original debt=?
The total amount paid = $150 × 10 = $1500
Amount left = $6900
Total debt amount:
(Total Amount left + total amount paid )
$(6900 + 1500)
=$8400
