Answer:
c. It will increase.
Explanation:
Break even point is the level of activity at which a firm neither makes a profit nor a loss.
<em>Break - even units = Fixed Costs ÷ Contribution per unit </em>
therefore,
<u>Existing break-even point in units :</u>
Break - even units = $16,000 ÷ ($40 - $18) = 727.27 or 728 units
<u>New break-even point in units :</u>
Break - even units = $21,000 ÷ ($40 - $16) = 875 units
Conclusion :
The results show that break-even point in units will increase from 728 units to 875 units as a result of the changes
Answer:
the numbers are missing, so I looked for a similar question:
a. On 1, Tree Service prepaid $7,200 for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year.
Dr Rent expense 1,200 (= $7,200 / 6)
Cr Prepaid rent 1,200
Balances:
Prepaid rent 6,000
Rent expense 1,200
b. On 1, Tree Service paid $1,050 for supplies. At 31, has $400 of supplies on hand. Make the required journal entry at 31. Then post all amounts to the accounts and show their balances at 31. Assume no beginning balance in supplies.
Dr Supplies expense 650 (= $1,050 - $400)
Cr Supplies 650
Balances:
Supplies 400
Supplies expense 650
c. On 1, Tree Service prepaid for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year. Prepare the adjusting journal entry to record the rent expense at 31.
SAME AS QUESTION A
Answer:
Increase by $200,000
Explanation:
Giving the following information:
Spice Inc.'s unit selling price is $60, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 8,000 units?
Effect on income= (60 - 35)*8,000= $200,000
