Answer:
1,875 units.
Explanation:
Break-even is the point where a company neither generate profit not make loss, or we can say that it the sales at which the operating profit will be zero. It can be calculated for sales volume as-well-as dollar sales. Let's prepare a contribution income statement to calculate the break-even sales in quantity. We know that:
EBIT / Operating Profit = (SP * Q) - (VC * Q) - Fixed Cost
where
SP = Selling Price
Q = Quantity / Units
VC = Variable cost
As it is understood that the operating profit at break-even is zero, simply put it in the above contribution income statements along with other figures given in the question.
⇒ 0 = (20 * Q) - (12 * Q) - 15,000
OR 15,000 / (20 - 12) = Q
⇒ Break-even units = Q = 1,875 units.
Answer:
Production= 60,740
Explanation:
Giving the following information:
Sales= 59,700
Beginning inventory= 6,410
Desired Ending inventory= 7,450
<u>To calculate the production for the year, we need to use the following formula:</u>
Production= sales + desired ending inventory - beginning inventory
Production= 59,700 + 7,450 - 6,410
Production= 60,740
Answer:
Correct Answer:
D) The disability must occur before a stated age, such as 65, for premiums to be waived.
Explanation:
In Life insurance, the individual insured against bad events that may likely occur in his or her life through an insurance company. This would led to the company to pay his beneficiary or the individual in question if such event happened.
<em>For waiver-of premium to occur in a life insurance,the disability of the individual must occur before the age of 65 years which is assumed to be the retirement age.</em>
Answer:
The correct answer is $117,500
Explanation:
According to the scenario, the given data are as follows:
Sales for august = $110,000
Sales for September = $190,000
So, we can calculate the September cash receipts by using following formula:
Cash receipt from August = $110,000 × 55% = $60,500
Cash receipt from September = $190,000 × 30% = $57,000
Total cash receipt for September = Cash receipt from August + Cash receipt from September
= $60,500 + $57,000
= $117,500
Answer:
$48,500
Explanation:
Price $42,500
Sales tax on the purchase $2,500
shipping and preparation costs $3,500
$42,500+$2,500+$3,500=$ 48,500
Therefore the truck should be recorded on the balance sheet prior to recording depreciation expense with $48,500
