The number of books that will be produced such that the costs from the two methods be the same is 4668 units.
From the complete question, the total cost of the first equation will be:
= 8.25x + 65054
The total cost for the second equation will be:
= 19.50x + 12539
Then, we'll equate both equations together and this will be:
8.25x + 65054 = 19.50x + 12539
Collect like terms
19.50x - 8.25x = 65054 - 12539
11.25x = 52515
Divide both side by 11.25
11.25x/11.25 = 52515/11.25
x = 4668 units.
Therefore, the breakeven unit will be 4668 units.
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Answer:
d. $250,000.
Explanation:
In order to calculate the expense of the goodwill, we must first calculate the net asset's fair value shown below:
The fair value of net asset = The fair market value of total assets - the fair market value of liabilities
= $125,000 + $750,000 - $175,000
= $700,000
And, the purchase value of all outstanding stocks is $950,000
So, the goodwill would be
= $950,000 - $700,000
= $250,000
Answer: They have already signed the contract with the first deal and now the only option to them is to take the original deal since they have already signed the contract which means they now have a legal duty to that first dealer .
Explanation:
What is legal duty?
Legal duty is a legally binding obligation on a contract to follow the law when doing something towards the other part. Since they have signed it is legally binding that they now take the original deal or the first deal.
Answer:
$400 favorable
Explanation:
The computation of the volume variance is shown below:
Fixed overhead Volume Variance = Actual Overheads - Budgeted Overheads
where,
Actual overhead is
= 5,200 units × 2 hours × $1
= $10,400
And, the budgeted overhead is
= 5,000 units × 2 hours × $1
= $10,000
So, the volume variance is
= $10,400 - $10,000
= $400 favorable
We simply deduct the budgeted cost from the actual cost so that the difference could be come
