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3 years ago

The break-even point is that level of activity where:

Business

1 answer:

nata0808 [166]3 years ago

6 0

Answer:

2. contribution margin equals fixed cost.

Explanation:

Break-even point is the point at which a business does not make any profits or losses. At break-even, the total cost equal to total revenue. Business express break-even as the number of units produced or sold or revenue generated.

In calculating the break-even point, a business must understand its costs and revenues. Business expenses are classified into fixed and variable costs. At break even, the total revenue will match the total of fixed and variable costs.

The contribution margin is the result of the difference between the selling price and variable cost. Therefore, the contribution margin takes care of the variable costs. If the contribution margin matches break-even, a business will not make any loss or profits.

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The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $15,000 w

Westkost [7]

Answer :

1. A. Operating activities.

2. The sale price of the land should be shown in the investing activities

$25,813.20

Explanation :

As per the data given in the question,

The interest expense is reported in the operating activities section of the cash flow statement

Net sales = Gross sales - Sale returns - Sales discounts

=$27,000 - $660 - $526.80

= $25,813.20

The sales discount is come from

= ($27,000 - $660) × 2%

= $526.80

The preparation of the multi step income statement is presented below:

Ozark Merchandisers

Income Statement

Net sales revenue $25,813.20

Less: Cost of goods sold ($15,000 - $400) $14,600

Gross profit $11,213.20

Less: expenses

Selling and administrative expense $2,835

Income from operations $8,378.2

Add: Gain on sale of land $900 ($6,900 - $6,000)

Less: Interest expense $200

Net income $9,078.20

The sale price of the land i.e $6,900 should be shown in the investing activities as it reflects the cash inflow position

This is the answer and the given options are incorrect

3 0

3 years ago

Seamstresses at Rear Gear, a large maker of backpacks, have become more productive due to the firm’s recent purchase of new sewi

maksim [4K]

Answer:

Hire more labor and increase the output.

Explanation:

Because Rear Gear is a profit-maximizing firm, it will hire more labor and increase the output.

This is because, when the firm has purchased a new sewing machine, they need to produce more in order to capture the fixed cost of production (i.e. cost of sewing machine). In order to do so, they need to hire more workers or labour to increase the total output.

4 0

3 years ago

Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She

Mkey [24]

Answer:

accounting profit = $25

Total cost = $15

Economic profit = $15

Explanation:

given data

spends = $5

Implicit cost = $10 per hour

sell = $30

to find out

calculate the total cost for one photo frame

solution

first we calculate here accounting profit that is

accounting profit = Sale price - cost spent on materials

accounting profit = $30 - 5

accounting profit = $25

and

Total cost = Explicit cost + Implicit cost

Total cost = 5 + 10

Total cost = $15

and Economic profit will be

Economic profit = Accounting profit - implicit costs

Economic profit = $25 - $10

Economic profit = $15

7 0

3 years ago

Mayree is the owner of Spines Books, a small eclectic-style bookstore in a bustling college town. Mayree prides herself in selec

baherus [9]

Answer:

Inventory turnover

Explanation:

Inventory turnover is the ratio which states how many times the company has sold as well as replaced the inventory during the stated period. The company could divide the days in the year through the formula of inventory turnover in order to compute the days it need to sell the inventory.

So, in the case, if she compute the inventory turnover ratio for the store and then compare with other stores. And higher inventory turnover ratio states the greater amount of efficiency in the business operations. The objective is to maximize the use of the cash and minimize the inventories.

8 0

3 years ago

Select the items that are jobs of the Federal Reserve.

andriy [413]

Answer:

provide banking services

watch banks and protect customers

influencing the money supply

4 0

3 years ago