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Answer:
781 units
Explanation:
Under the CVP concept, the break-even point is calculated by dividing the fixed costs by the contribution margin per unit.
i.e., break-even point = fixed cost/ contribution margin per unit
Currently, fixed costs are $213,000, an increase of 10% will take to
=(10/100 x $213,000) + $213,000
=$21,300 + 213,000
=$234, 300
The selling price is $250, an increase of 40%
=$250 x 1.4
=$350
variable cost will remain the same this year and the following year
Current variable costs are 20% of sales
=20/100 x 250
=0.2 x 250
=$50
Contribution margin will be new selling price - variable costs
=$350-50
=$300
Break-eve point = $234, 300/300
=781 units
Answer:
The Total amount is shown in the income statement $34,240
Explanation:
The computation of the amount that should be presented in the 2020 income statement is shown below:
Dividend collected by Howdy Doody corporation (18% of $68,000) $12,240
rise in Fair value of Stock credited to the income statement ($74,000 - $52,000) $22,000
The Total amount is shown in the income statement $34,240
Answer:
$525,000
Explanation:
The amount to be recognized as research and development expense for the year includes the cost of research and development services performed by Key Corp. for Orr, the cost incurred on testing of pre-production prototypes and models as well as the cost of testing in search for new products or process alternatives,
In other words, all costs incurred would be expensed since no of them met the capitalization criteria as per generally acceptable accounting principles
