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3 years ago

The following information pertains to Nova Co.'s cost-volume-profit relationships:

Business

1 answer:

vitfil [10]3 years ago

4 0

Answer: $150

Explanation:

Breakeven point in units sold = 2,000

Variable expenses per unit = 500

Total fixed expenses = $150,000

The break even in units is calculated as:

= Fixed Cost / Contribution per Unit

Therefore,

1000 = 150000/ Contribution per unit

Contribution per Unit will now be:

= 150000 / 1000

= 150

It should be noted that after the break even point, every unit sold will lead to an increase in the contribution per unit to the net operating income. Therefore, the amount that'll be contributed to net operating income by the 2,001st unit sold is $150.

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if a farm has nfio of $100,000, and an opportunity cost total of $25,000, what is the farm's return to equity? (round to the nea

tiny-mole [99]

The return to equity is $75000

Another form of financial ratio is the return on equity. Financial ratios are data taken from a firm's financial statements and used to predict and draw specific conclusions about the organization.

Relative return on equity is a tool used to forecast a company's profitability. It evaluates how effectively people employed in any business have used the money that has been invested.

Since the farm has Nfio of $100,000 and an opportunity cost total of $25,000.

Therefore,

Return on equity -

Net Farm Income from Operations - Opportunity cost

= 1,00,000 - 25,000

= 75,000

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1 year ago

Steve has built an online shopping website and he would like to increase his website ranking in the search results. You are his

Kruka [31]

Answer: By linking his website to other popular websites.

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2 years ago

Grocery Corporation received $330,654 for 9.50 percent bonds issued on January 1, 2018, at a market interest rate of 6.50 percen

andre [41]

Answer:

Explanation:

Issue price of bond = $330,654

Face Value = $272000

Premium on issue of bond = $330,654 - $272000 = 58654

Journal entry for bond issuance:

Cash Dr $330,654

Bonds Payable $272000

Premium on Bonds payable $58654

(Being bond issued at a premium of $58654)

As per effective interest method, interest expense = market rate * book value of bond

= 6.5% * $330,654 = $21492.5

Cash interest = $272000 * 9.5% = $25840

Premium to be amortized on interest date = $25840 - $21492.5 = $4347.5 or $4348

Journal entry for interest payment on December 31:

Account Financial Issuance Interest paid

Statement

Bonds payable Balance Sheet 272000

Discount on Bonds payable NA NA NA

Interest expense Income Statement 0 21492.5

Premium on Bonds Payable Balance Sheet 58654 -3813

Note: Interest expense for the year:

Interest to be paid ($272000 * 9.5%) 25840

Less: Amortization of Premium (58654/6.5) 3813

Interest expense 21492.5

Journal entry:

Interest expense Dr. 21492.5

Premium on Bonds payable Dr. 3813

Cash Account 25306

Note: here, it has been premium has been written on Straight line basis.

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3 years ago

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aleksklad [387]

Answer:

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3 years ago

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Companies must periodically audit their brands'________, which might turn up brands that need more support, brands that need t

avanturin [10]

Companies must periodically audit their brands' strengths and weaknesses, which might turn up brands that need more support, brands that need to be dropped, or brands that must be rebranded or repositioned because of changing customer preferences or new competitors.

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3 years ago