Answer:
29,394 units
Explanation:
The formula for break even point is given as Fixed cost / Contribution margin.
Where;
Contribution margin = Sales per unit - Variable cost per unit
Given that ;
Fixed cost = $194,000
Unit selling price = $14.90
Unit variable cost = $8.30
Therefore;
BEP(units) = $194,000 / $14.90 - $8.30
= $194,000 / $6.6
= 29,394 units
The type of business that Wally is proposing in the scenario above is partnership. There are three different type of partnership,they are: limited partnership, limited liability partnership and general partnership. Each of these three types provides partners with different level of liability. Thus, Wally was wrong when he said that there could be no personal liability for debts.
Answer: (D) Management letter of representation
Explanation:
The management letter of representation is the form of letter that are written by the external auditors in an organization.
The main purpose of management letter of the representation is that it include all the financial statement of the company signed by the senior company manager.
The accuracy of the letter are managed by the management of the company. This letter is basically submitted to the auditors for the further analysis.
Therefore, Option (D) is correct.
It's supply or demand is not sensitive to price changes