Answer:
$1.25
Explanation:
According to the quantity theory of money
money supply x velocity = real gdp x price
7 x 60 = 336 x p
p -1.25
velocity measures how fast money changes hand in the economy
real GDP is gdp adjusted for inflation
Answer:
(1)
Fees revenues 42,600
Total expenses 1.92 x 4260 = 8179.2
<em>Net income 34,420.8</em>
<em>(2)</em>
Fees revenues 42,600
Variable cost 2,982
Contribution Margin 39,618
Fixed Cost 14,400
Net Income 25,218
Explanation:
(1)
We multiply by the garment cleaned
10 x 4,260 = 42,600
0.7 x 4,260 = 2982
and distribute the fixed cost among the normal capacity
14,400 / 7,500 = 1.92 fixed cost per garment cleaned
.7 + 1.92 = 2.62 cost per garment
(2)
We do not include the fixed cost in the unit cost, we subtact them completely as an expense.
Answer:
is a potential liability that has arisen because of a past event or transaction.
Explanation:
A contingent liability is a potential liability that has arisen because of a past event or transaction.
Some of the characteristics of contingent liabilities includes being remote, probable, estimable, and reasonably possible.
In order to record a contingent liability as a liability on a company's balance sheet, it must be probable (likely to occur) and subject to estimate.
Hence, companies are advised to record the contingent liabilities so as to meet the Generally Accepted Accounting Principles (GAAP) and IFRS requirements.
Answer:
55,060 machines
Explanation:
Projected sales = 54,500
Estimated opening balance = 6,860
Desired ending balance = 7,420
Budgeted production = ?
Let the budgeted production be B
Using the formula
Opening balance + Budgeted production - Sales = Closing balance
6,860 + B - 54,500 = 7,420
B = 7,420 + 54,500 - 6,860
B = 55,060
The budgeted production for the year is 55,060 machines.
