Answer:
$1,777,777.78
Explanation:
The computation of the sales volume needs to be achieved is shown below:
Sales volume is
= Fixed cost + after tax income ÷ (contribution margin ratio)
= ($664,000 + $136,000) ÷ (0.45)
= $1,777,777.78
We ignored the income tax rate as there is no need in the computation part
By using the above formula, it can be determined in an easily manner
The advertisement is AN OFFER.
<span>Having stated that Jena chairs are marked
down by 20 percent to $110, the advertisement then states that the first six people to purchase a Jena chair on May
20 will receive an additional 20 percent off and a free seat cushion. </span>
Answer:
31 December 2019
Cash 19000 Dr
Accumulated depreciation 12186 Dr
Equipment 27419 Cr
Gain on disposal 3767 Cr
Explanation:
Straight line depreciation method charges a constant depreciation expense through out the useful life of the asset.
To calculate the gain or loss on disposal/sale of an asset like this, we need to first determine the book value or carrying value of asset on that day.
Carrying value = Cost - Accumulated depreciation
Carrying value = 27419 - 12186
Carrying value = $15233
Gain or (loss) on disposal = Cash/Sale proceeds - Carrying Value
Gain or (loss) on disposal = 19000 - 15233
Gain or (loss) on disposal = $3767 Gain
Answer:
<em>(A) realize financial rewards.</em>
Explanation:
In <em>theory (textbook)</em> the no.1 reason that people become entrepreneurs is to achieve <em>maximum return</em>. The concept of higher risk, higher return is the key here. Business as compared to Services and Profession, has the highest risk thereby giving the best returns out of the three.
However, in <em>practicality</em> people adopt business to <em>pursue their own ideas, gain prestige, be their own boss, continue a family tradition and also to realize financial rewards. </em>