Answer:
Carter Co.'s break-even point in units was 40000 units.
Explanation:
Total units sold = 14000 + 56000
= 70000
Weight of ark = 14000/70000
= 0.20
weight of bins = 1 -0.20
= 0.80
weighted average contribution = (40 *0.20 ) + (20 *0.80 )
= 8+ 16
= $ 24 per unit
Break Even Point (Units) = Fixed cost /weighted average contribution
= 960,000 / 24
= 40000 units
Therefore, Carter Co.'s break-even point in units was 40000 units.
Answer:The minimum amount is the price that will give a profit of $3700
Explanation:
The minimum amount the company should accept for product X if it's to be sold at the split off point it's maximum amount they will earn as profit if they sales after further procession.
The total cost the company will incur if they process further it's the cost they incurred at the split off point and at further procession which equals ($16,800+$15,000) =$31,800
On sales after procession they will earn a price of $35500 which means a profit of $3700 this means the firm should sale product X at spilt off point for a price that will bring a minimum profit of $3700.
Answer:
In preparing a statement of cash flows under the indirect method, an increase in accounts payable would be reported or included as a(n):
source of cash.
Explanation:
Accounts payable are liabilities owed to suppliers for goods or services. They are listed on the balance sheet under current liabilities and on the cash flow statement under operating activities. When preparing the statement of cash flows, an increase in accounts payable is regarded as a source of cash while a decrease is regarded as a use of cash.
The answer is selecting an alternative. It is because it is
not always satisfying or a guarantee of using an alternative in the stage of
managerial decision making process because sometimes it won’t suit or will be
helpful in solving the problem.
Answer:
B. $300,000
Explanation:
Macaw Corporation increased its E & P last year for the entire amount of the deferred gain on the installment sale. Since one-half of the $800,000 gain is included in taxable income in the current year, taxable income should be reduced by this amount to determine current E & P. Therefore, Macaw Corporation’s current year E & P is $600,000 ($1 million taxable income – $400,000 of installment sale gain). Because one-half of the current E & P is allocated to Tracy’s distribution, she has a $300,000 dividend
