Answer:
(a) 3,250 units
(b) 5,750 units
Explanation:
(a) BEP(units):
= fixed cost ÷ contribution margin per unit
= $52,000 ÷ ($18 - $2)
= 3,250 units
Therefore, the 3,250 units must Warner sell per month to break even.
(b) BEP(units):
= (fixed cost + target profit) ÷ contribution margin per unit
= ($52,000 + $40,000) ÷ $16
= 5,750 units
Therefore, the units must Warner sell per month to make an operating profit of $40,000 is 5,750 units.
Answer: chemical fertiliser refers to any number of synthetic compound substances created specifically to increase crop yield.
Some examples of chemical fertilisers are ammonium sulphate, ammonium phosphate, ammonium nitrate, urea, ammonium chloride.
Answer:
Multiplier = 4
Explanation:
Government spending multiplier denotes the multiplier by which the GDP increases in response to increase in government expenditure.
Government spending has multiple impact depending on the society's overall propensity to consume.
Suppose if government spends USD 1, and consumer A receives USD 1, spends 0.75 out of this USD 1, consumer B receives this USD 0.75 and he also spends 75% of this USD 0.75 he received, this cycle continues until the spending reduces to nil.
Therefore spending multiplier is used to calculate total impact of each USD spent by government. Following is the formula for multiplier
Multiplier = 1 / (1 - marginal propensity to consume)
Multiplier = 1 ( 1 - 0.75)
Multiplier = 4
Answer:
Decrease, Increase and frictional
Explanation:
Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will <u>DECREASE</u>. The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will <u>INCREASE</u>. The temporary unemployment resulting from such sectoral shifts in the economy is best described as <u>FRICTIONAL</u>
Answer:
Dr. Investments in Associates 250,000
Cr. Cash 500,000
Dr. Cash 10,000
Cr. Investments in Associates 10,000
Dr. Investments in Associates 50,000
Cr. Investment revenue 50,000
Explanation:
The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.
An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.
- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.
- Jolley records the net income from Tige Co. as an increase to its Investment account.
