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3 years ago

If the price per unit were doubled at the same time that the variable cost per unit was doubled, the break-even point would be:

Business

1 answer:

skelet666 [1.2K]3 years ago

7 0

Answer:

halved

Explanation:

Breakeven quantity are the number of units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

Assume fixed cost is initially 1000 units, price is 10, variable cost is 5

breakeven quantity = 1000 / (10 - 5) = 200

assume price per unit were doubled at the same time that the variable cost per unit was doubled

1000 / ( 20 - 10) = 100

breakeven point is halved

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2 years ago

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Answer:

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Read 2 more answers

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Answer and Explanation:

The computation is shown below:

a. Amount of adjusting entry for uncollectible accounts

= Estimated balance of Allowance for Doubtful Accounts + debit balance

= $16,400 + $4,000

= $20,400

b. Adjusted balances

For account receivable

= account receivable

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For allowance for doubtful debts

= Estimated amount

= $16,400

For bad debts

= AMount of adjusting entry

= $20,400

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= $420,000 - $16,400

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3 years ago