<u>Solution:</u>
The price per variable unit is set at 1.5 times the cost; the VC / unit is estimated at $2.50.
Price = 2.5 * 2.50 = $6.25
Variable cost = $2.50
Fixed cost = $220,000
Break-Even Volume = Fixed cost / (Price - Variable cost)
= $220.000 / (6.25 - 2.50)
Break-Even Volume = 58,667 units
Gain on sale of equipment = $1700 By Extracting Information.
The gain or loss on sale of an asset used in the business is the difference between 1) the amount of cash received by the business and 2) the carrying value (book value) of the asset at the time of sale.
The disposal account is the profit or loss account shown in the income statement that records the difference between the proceeds of disposal and the net book value of the asset being sold.
A gain on sale of assets arises when an asset is sold in excess of its carrying amount. Carrying value is the purchase price of an asset less subsequent depreciation and impairment losses. Profit is classified as a non-operating item on the sales company's income statement.
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Answer:
False
Explanation:
A merger refers to a corporate agreement between two firms who come together combining assets and resources and working as a single identity to reap synergestic gains.
A vertical merger refers to a form of merger wherein the purpose is to provide supply chain functions with respect to a common product or service. Usually in a vertical merger, the company merges with it's immediate supplier i.e provider of raw materials so as to reduce costs and to improve efficiency.
In the given case, the company is considering merging with it's supplier of inputs so as to make required components available as well as to improve quality. This is a case of vertical merger.
Answer:
(e) none of the above is true.
Explanation:
<u>Note: The question appeared incomplete. Thus, a similar question has been attached for reference purpose and the question has been solved accordingly</u>
A risk averse investor is defined as someone who is unwilling to assume risk in return for a higher return. As we know, higher the risk, higher would be the return.
An investor with higher degree of risk aversion i.e someone who is averse or against assuming any risk would not prefer a riskier portfolio.
Sharpe ratio depicts return which is earned above risk free rate of return, per unit of risk assumed.
A Risk averse investor would prefer investing at a risk free rate of return despite the return being less.
A risk averse investor would prefer investing in govt treasury bills or government treasury bonds which would offer low but assured return with nil risk.
Thus, the correct option is (e) none of the above is true.
Answer:
A.
Explanation:
Frederick Herzberg was an American behavioral scientists who proposed the theory of Two-Factors. In his theory, he defined that an employee is motivated by two-factors, viz., motivators and hygience factors.
He remarks that motivators such as recognition and achievement motivates employees to work harder, whereas, hygience factors such as salary also effects employees motivation to work.
Therefore, the given statement is true. Thus option A is correct.