Most likely D because sale prices especially on retail will not last forever.
The break-even point is the level of sales at which profits are equal. The company sold 38,000 units in the eastern region and 13,000 units in the western region
Equal gross revenue means no loss or profit for small businesses. This means that we have reached a stage of production where the cost of production equals the revenue of the product.
To calculate the breakeven point in units, use the following formula: Points (Sales) = Fixed Costs ÷ Contribution Margin
The break-even point (BEP) helps the business owner/CFO to realistically check how long it will take to see a return on an investment. For example, calculate or model the minimum turnover required to cover the cost of entering a new location or new market.
Learn more about BEP at
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Answer:
The proper adjusting entry on December 31 is, D. Debit Insurance Expense, $4,700; credit Prepaid Insurance, $4,700.
Explanation:
The entry of prepaid insurance made earlier was $8,150 and on December 31, it was calculated that the unexpired amount of insurance was $3,450. So first we will calculate the amount of prepaid insurance which has been expired,
$8,150 - $3,450 = $4,700
To record the expired prepaid insurance, we will first debit prepaid insurance expense with $4,700 and then credit prepaid insurance with $4,700.
Prepaid Insurance is an asset and it will decrease by a credit of $4,700, so that the remaining balance in prepaid insurance account is $3,450 which is the remaining unexpired prepaid insurance.
The gig economy is a free market system in which temporary, flexible jobs are commonplace and companies bring on independent contractors and freelancers instead of full-time employees, and in many cases, for short-term engagements.Jul
