Answer:
As a result of this stock dividend, Sheldon's common stock will increase by $900,000, the additional paid in capital will not change, and the retained earnings will decrease by $900,000
Explanation:
Stock dividend is paying dividends by issuing additional stocks to shareholders.
In this case,50,000 shares were issued instead of paying cash dividends.
The stock dividend is financed from retained earnings and the amount involved is $900,000(50000*$18).
However,common stock would witness an increase of $900,000 by a way of credit and retained earnings would reduce by the same amount with no impact in the paid in capital in excess of par since the par value of the stock was not provided,hence it is no par value stock.
What is the question mate?
Answer:
The correct answer here is cost based pricing strategy.
Explanation:
Cost based pricing strategy is that type of pricing method where selling price of a product is determined by the company by adding a certain percentage of profit element with the cost of a product . The cost here is often manufacturing cost , which is used a basis for setting the final price, which would be taken out by adding a fixed amount or certain percentage of total cost to be added as profit to the cost.
Answer:
$1.75 and $4,500
Explanation:
The computation of the fixed cost and the variable cost per unit by using high low method is shown below:
Variable cost per unit = (High total cost - low total cost) ÷ (High unit produced - low unit produced)
= ($74,500 - $36,000) ÷ (40,000 units - 18,000 units )
= $38,500 ÷ 22,000 units
= $1.75 per unit
Now the fixed cost equal to
= High total cost - (High units produced × Variable cost per unit)
= $74,500 - (40,000 units × $1.75)
= $74,500 - $70,000
= $4,500
We simply applied the above formulas
