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a_sh-v [17]
2 years ago
10

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price fo

r the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even?
790 units
1,000 units
500 units
900 units
667 units
Business
1 answer:
Stels [109]2 years ago
6 0

Answer:

1,000 units

Explanation:

The break even point refers to the number of units of a product a company would sell such that the company's sales is equal to the total cost.

The total cost includes the fixed and variable costs. As such, at break even point, net profit is zero.

Let the number of units be G

25G = 10G + $15,000

15G = $15,000

G = 1000 units

The number of units that has to be produced and sold to break even is 1,000 units.

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Warranty costs in the amount of $500,000 were recorded on the 2018 Income statement. However, the warranty tax deduction is not
netineya [11]

Answer:

Lets shape the question so it makes some sense.

<em>Warranty costs amounting $500,000 were recorded in 2018 Income statement. However, the warranty tax deduction is not allowed until payment occurs in future years. Disscuss accouting implication</em>

See detail answer below.

Explanation:

As per tax laws warranty provision is not allowed as deductible expense only warranty cost incured/paid during the year is allowed deduction when computing taxable income.

So the company shall recoginze defferd tax asset for this expense in current year. Following entries will be made by the company for financial accounting purpose.

Deffered Tax Asset Debit    $125000

Deffered Tax Income            $125000

(Assuming applicable tax rates is 25%)

The next year when the warranty claim will be incured/paid the company will reverse the above entry and can claim tax deduction against this waranty cost paid but not on provision basis.

4 0
3 years ago
Which of the following best explains why buying a single-family home in a city
BartSMP [9]

Answer:

C. Housing prices in cities generally increase more quickly than

anywhere else.

Explanation:

An investment is an activity that leads to an increase in value or wealth.  A good investment is one that appreciates its value with a big percentage in a short period. Houses are always in demand in big cities. For this reason, their prices are ever appreciating.

Buying a single-family home in a city is a good investment decision because it is bound to appreciate in value. Should one decide to sell it later, they are highly likely to receive a much higher amount than they paid for it. The probability of making some good profits from the house is high.

8 0
2 years ago
Read 2 more answers
Red Hot Inc. and Maverick Cycles Inc. are two competing motorcycle companies. While Red Hot's Cost of goods sold/Revenue is 63.4
kykrilka [37]

Answer:

a- Red Hot is less efficient than Maverick Cycles in producing goods.

Explanation:

Given data

The Red Hot's Cost of goods sold/Revenue = 63.4%

And, the Cost of goods sold/Revenue of Maverick Cycles = 54.2%

By considering the above information, we can see that in the red hot case, the percentage is higher whereas in the maverick cycles the percentage is lower than reflecting the less efficient in the red hot case as the cost value that is incurred for producing the goods and services is higher than the sales revenue while in another case, the cost is lower as compared to the red hot

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3 years ago
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Mandarinka [93]

Answer:

Rob and Bill.

Explanation:

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Which statement accurately describes the effect of the federal government rapidly reducing government expenditures?
olganol [36]
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