Answer:
e) $4,651
Explanation:
The break-even point is the level of activity that a company must operate to have its total cost equal to its total revenue. At this level of activity, the business makes a zero profit, as the total contribution is exactly the same as the total fixed cost.
It is important for the business to have an idea of the number of customers or units of product to sell inorder for it to cover its total fixed cost. This is the information the break-point analysis seeks to provide.
Working it out
Break-point in sales = Total General fixed cost/ Contribution margin ratio
Contribution margin ratio (CMR): Contribution is sales less variable costs. And the contribution margin ratio is the proportion of sales that is earned as contribution. The higher the better.
CMR = contribution/sales
Fixed cost = Contribution + net loss
We can now apply all these relationships to the question given:
Fixed cost = 1720 + 280
= 4,000
Contribution margin ratio = 1720/400 = 43%
Break-even sales ($) = 4000/0.43
= $4,651
Units to be produced in February is calculated as -
Units to be produced in February = February sales + Ending inventory of February - Beginning inventory
February sales = 4,600 units
Ending inventory = 25 % * Sales of March = 25 % * 5,300 units = 1,325 units
Beginning inventory - 25 % * Sales of February = 25 % * 4,600 unit = 1,150 units
Units to be produced in February = 4,600 units + 1,325 units - 1,150 units
Units to be produced in February = 4,775 units
Answer:
d. quality.
Explanation:
-Delivery area refers to the places in which the appliances can be delivered.
-Quantity refers to the amount of appliances that the company can produce and sell.
-Price refers to the amount of money that customers would pay for the appliances.
-Quality refers to the degree in which the appliances can meet the customer's requirements.
According to this, the answer is that based on its customers, ABC should try to dominate the market in quality because its products meet the expectations of professional chefs and that should be market to focus on as the company can have an important advantage by providing exactly what they need.
The other options are not right because professional chefs are interested on what they can do with this appliances and not on price, quantity or delievery area.
Answer:
D. $42,000 should be debited to Land Improvements
Explanation:
The cost of the land housing the parking is recorded in the land account. Other costs such as paving cost and lights are improvements and as such are added and recorded in the Land Improvements accounts.
Total Land improvements = $30,000 + $12,000
= $42,000
The right answer is D. $42,000 should be debited to Land Improvements.
Answer:
The correct answer is "Is consistent with the company's mission statement".
Explanation:
A company's mission is the reason why a company exists and is created. It states the reason for its existence, as well as indicating the activity that the company carries out. The marketing plan is strongly linked to the company's mission, to be in line with the guidelines that the company has for its workers.
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