Answer: 5,000 units
Explanation:
Break-even points in units is calculated by;
= Fixed Costs / Contribution Margin per unit
Contribution Margin
= Sales - Variable Costs
= $40 - ( 40 * 40%)
= 40 - 16
= $24 per unit
Breakeven point
= 120,000/24
= 5,000 units
Missing information:
How much is the value of full costing ending inventory?
Answer:
$8,750
Explanation:
1,000 units were produced and 800 were sold, so ending inventory = 200 units
total production cost per unit (under full costing) = $35,000 / 800 = $43.75
ending inventory = $43.75 x 200 = $8,750
Full costing basically refers to absorption costing, which calculates COGS using both variable and fixed costs (total production costs).
Answer:
a. $270,000
Explanation:
The computation of the total amount of working capital is shown below:
As we know that
working capital = Current asset - current liabilities
where,
Current asset = Cash + prepaid insurance + account receivable + inventory
= $130,000 + $60,000 + $100,000 + $140,000
= $430,000
And, the current liabilities is
= Account payable + salaries payable
= $140,000 + $20,000
= $160,000
So the working capital is
= $430,000 - $160,000
= $270,000
No, it will not be affected as contingent liabilities are yet not recognized.
Assets are owned by the company and liabilities are borne by the company. Both are listed on the company's balance sheet, which is a financial statement that shows the financial condition of the company. Assets fewer liabilities equal the owner's equity or net worth.
Debt mainly has three classifications. These are short-term liabilities, long-term liabilities, and contingent liabilities. Short-term and long-term liabilities are the most common in business. As with businesses, the net worth of an individual or household is determined by weighing assets and liabilities for most households, liabilities.
Learn more about liabilities at
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