Answer:
a. Break Even points in past year 8,750 units
b. Break Even point in coming year 10,000 units
Explanation:
The breakeven sales in units is calculated by dividing the fixed costs by the contribution margin of each unit of sales.
The selling price is $ 40 and the variable costs per unit are $ 32 so the contribution margin per unit is $ 8.
For past year
To cover the fixed costs of $ 70,000 the breakeven point is calculated as:
$ 70000/ $ 8 = 8.750 units.
For coming year
The fixed costs are increasing by the property taxes increase of $ 10,000 so the fixed costs are $ 80,000
Break even point is calculated as $ 80,000/$8 = 10,000 units.
Answer:
credit to Work in Process of $59,000.
Explanation:
Based on the information given the appropriate l journal entries to record these transactions would include a: CREDIT TO WORK IN PROCESS OF $59,000
Dr Finished goods $59,000
Cr Work in process $59,000
Dr Cost of goods sold $65,000
Cr Finished goods $65,000
Answer:
The number of days, on average, takes the firm to sell its inventory: c. 121.07 days
Explanation:
The number of days takes the firm to sell its inventory indicates how many days on average a company turns its inventory into sales, is calculated by following formula:
Days' sales in inventory = (Inventory/Costs of goods sold) x 365
Al's Sport Store has costs of goods sold of $628,300, inventory of $208,400
Days' sales in inventory = ($208,400/$628,300) x 365 = 121.07 days
Answer: Product advertising focuses on promoting specific individual products, while institutional advertising focuses on promoting your overall brand.
Explanation: