Answer:
The break even units are 3000 units and when it desires the profit of $36000 then sales unit is 3400 units.
Explanation:
The selling price of a product (SP) = $150 per unit.
Variable cost (VC) = $60 per unit.
Fixed cost of the company = $270000
Break-even units can be calculated by dividing the fixed cost from the difference in selling price and variable cost.
Break even Units = (fixed cost) / ( SP – VC)
= 270000 / (150-60)
= 3000 units.
Break-even units when a company desires a profit of $36000.
Desired units for sales = (Fixed Cost + Profit)/ Contribution per unit
= (270,000 + 36,000) / (150 - 60)
= 3,400 units
Answer:
The correct answer is option E.
Explanation:
The term capital refers to the machinery and equipment that are used to produce goods and services. These things are long lasting and are not exhausted in the production process.
It is one of the four factors of production and essential for production of goods and services. It is already produced durable good.
Financial securities such as stocks and bonds are financial capital and are different from capital goods or capital assets.
Answer:
Commuting refers to travelling from your home to your workplace. It generally refers to the distance that people generally travel to get to their office or any type of workplace.
While business travel refers to not only leaving your house to go to work, but actually going somewhere else to perform your regular business activities, e.g. going form one state to another to close a sale. In order for business travel to be effectively recognized as such, it must be necessary for your business activity and it should last more than one ordinary workday.
In this case, your client continuously leaves his house and goes form one state to another performing his normal business activities. This perfectly fits the IRS's definition of business travel.
Initially, you can try to solve this issue with IRS Office of Appeals (since you are right), but if that doesn't work, then you can go to Tax Court.
In a way, everyone is completely and equally free when spending their money. However, this could be argued because some have more money than others. You are free to do what you want with the funds available to you.
