Answer:
The correct answer is D. $1,320,000
.
Explanation:
In this case, it should be considered that the Stone Company is just beginning to operate, so the capital at the end of the period is made up of the following:
Initial Capital: $ 1,200,000
Dividends: $ 120,000
TOTAL = $ 1,320,000
Net income is not part of the measurement of capital, since information on expenses must be available to calculate the profit or loss for the period. For its part, investments in shares are considered a current asset and do not enter into this calculation.
A legal firm would be considered a service company because they provide legal services to clients and persons.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level.
Mountain has recorded the following for the past nine months:
January:
Number of Cavities= 375
Total cost= $5,300
February:
Number of Cavities 500
TC= 5,850
March
Number of Cavities 350
TC= 5,200
April
Number of Cavities 600
TC=6,250
May
Number of Cavities 325
TC= 5,150
June
Number of Cavities 475
TC= 5,700
July
Number of Cavities 525
TC= 6,100
August
Number of Cavities 575
TC= 6,300
September
Number of Cavities 450
TC= 5,550
A) Variable cost= (Highest activity cost - lowest activity cost) / (Highest activity units - lowest activity units)
Variable cost= (6300 - 5150) / (600 - 325)= 4.18 per unit
Fixed cost= HACost - (variable cost per unit * HAUnits)= 6300 - (4.18*600)= 3792
Fixed cost= LACost - (variable cost per unit* LAUnits)= 5150 - (4.18*325)= 3792
B) Q= 400
Total cost= 3792 + 4.18*400= $5464
Answer:
The correct answer is higher than that for the Hungarian project.
Explanation:
The break-even point is defined as that point or level of sales in which the total income is equal to the total costs and, therefore, no accounting profit or loss is generated in the operation. It is a mechanism for determining the point at which sales will exactly cover total costs. The breakeven point is also known as the Cost-Volume-Profit ratio, and emphasizes the different factors that affect profit. The break-even point allows determining the minimum number of units that must be sold or the minimum value of sales to operate without losses. The analysis of the break-even point answers the question related to the decisions that must be made about the planning of the profits of a company or an investment project. In this regard, it is convenient to say that the study of any investment project must include the calculation of the sales levels (either in units or in pesos) that are required for reach operational balance.
