A price markup is an increase in the price the dealer sells that he ensures in order to gain guaranteed profit. If the markup is 20%, this means that he added 20% of what he paid for the car, and used this price for sale. Therefore, we let x be the price the dealer paid for the car.
$5999 = x + 0.2x = 1.2x
x = $4999
Thus, the dealer paid $4999 originally for the car.
Answer:
Fixed costs, sales price, and variable cost per unit
Explanation:
Cost-volume-profit (CVP) analysis is a cost accounting technique that examines how operating profit is affected by varying levels of costs and volume. Another name for CVP is break-even analysis because for different sales volumes and cost structures, it provides the break-even point (BEP) for different sales volumes and cost structures. BEP can assist managers during the short-term economic decision making.
Some of the assumptions of CVP are that fixed costs, sales price, and variable cost per unit will not change even when the volume of a product changes. The change in the volume of a product can either be an increase or a decrease.
Therefore, according to the assumptions of CVP, fixed costs, sales price, and variable cost per unit will not change as the volume of a product increases or decreases.
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Judiciary is the judicial authorities of a country; judges collectively.
Executive is the person or branch of a government responsible for putting policies or laws into effect.
Answer:
a.
Oct 1 Cash $240 Dr
Unearned Subscription Revenue $240 Cr
b.
Dec 31 Unearned Subscription Revenue $60 Dr
Subscription Revenue $60 Cr
Explanation:
a.
The receipt of $240 upfront in advance from a customer is a liability for the business as the business has received cash for service that is yet to be provided. The business will record this as a debit to the cash account and credit to a liability account of Unearned Service Revenue.
b.
On 31 december, the business has provided magazines for 3 months thus it has earned revenue for 3 months. The revenue for 3 months is,
Revenue per month = 240 / 12 = 20
For 3 months = 20*3 = 60
The business will record this as a credit to the subscription revenue and a debit to the unearned subscription revenue
The money she received from her parents for the purchase of school supplies would be used as a medium of exchange.
<h3>What is money?</h3>
Money is anything that is generally chosen and accepted by a community, as a medium of exchange and standard of value.
Characteristics of money are:
- Medium of exchange
- Store of value
- Measure of value
Hence, the money she received from her parents for the purchase of school supplies would be used as a medium of exchange.
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