1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yarga [219]
3 years ago
8

Gouda Company and Cheddar Company had the same sales, total costs, and income from operations for the current fiscal year; yet G

ouda has a lower break-even point than Cheddar. Explain the reason. Assuming Gouda is above the break-even point, what will happen for each unit sale
Business
1 answer:
Sedaia [141]3 years ago
3 0

Answer:

If both companies have the sames sales volume, total costs and income from operations, the reason why Gouda has a lower break even point is that their variable costs are lower. We use the contribution margin per unit to calculate the break even point and the contribution margin per unit = sales price - variable costs. The question states that total costs are equal, but it doesn't say anything about variable or fixed costs.

Assuming that Gouda is above break even point, each sale will generate a higher operating profit since the contribution margin is higher.

Explanation:

You might be interested in
Assume you are running a paid campaign and your original budget was $50,000 for the month. It's a 31-day month and you have spen
mash [69]

Answer: $2750

Explanation:

The original budget was $50,000 for the month, $20,000 has been spent already after which there was a revision of the monthly budget to $75,000.

Since $20000 has been spent, the remaining budget will be:

= $75000 - $20000

= $55000

Also, the money was spent for 11 days, therefore the number of days remaining will be:

= 31 - 11

= 20 days.

Therefore, the new daily budget for the month will be:

= $55,000 / 20 days

= $2,750

8 0
3 years ago
Financial statement auditors provide some degree of assurance that financial statements are free of material misstatement. Many
sineoko [7]

Answer:

First of all, an auditor must be skeptical about the information that he/she is gathering and analyzing. They should try to get as much audit evidence as they can in order to form an opinion. But an auditor can also reasonably assure that there are no material misstatements, either intentional or not intentional.

Most auditor procedures are intended to discover unintentional misstatements, but intentional misstatements are very hard to discover because more than one individual (or even a very large group) might have colluded in order to conceal them. The auditor gets his information from the controller, internal auditor, and other people within the organization, but what if they all colluded in order to conceal their bad actions.

E.g. an auditor should check for shipping receipts to be complete, accurate and in order, but he/she relies on information given by the same people that he/she is evaluating. The auditor can conclude that the shipping reports are complete, but he/she cannot state that they are true and valid because he/she wasn't there.

3 0
3 years ago
Match each of the terms below with their definitions and descriptions
Brums [2.3K]
The answer is B :)))
3 0
3 years ago
Under the FLSA, regular rate of pay does not include: A. vacation pay. B. severance pay. C. overtime pay. D. earned bonuses. E.
Galina-37 [17]

Answer:

The correct answer is A

Explanation:

FLSA stands for Fair Labor Standard Act, which is defined as the act that usually requires, the covered non- exempt employees to receive the overtime pay, at least 1 and 1/2 times of their regular pay for the time they worked in excess of the 40 hours per week of the work.

The regular rate is defined as the remuneration which involves all the employment remuneration that are subject to the exclusions mentioned in the Section 7 under sub section (e) of the FLSA.

So, the vacation pay is the one which is not involved in the regular rate as any time earned gained over 40 along with the vacation is the straight time which will not be paid.

5 0
3 years ago
Dividends paid to a company's own stockholders of $80,000 would be shown on the company's statement of cash flows prepared under
7nadin3 [17]

Answer: d. a deduction of $80,000 under financing activities.

Explanation:

Under the indirect method of showing cashflows, there are 3 sections being the Operating section, the investing section and the financing section.

The relevant section is the financing section. Financing activities are those transactions that relate to the business raising capital to fund their operations. They do this through long term debt and equity.

Dividends is a payment to shareholders and so falls under equity so by extension falls under the financing section. As dividends reduce the amount of money the company has, it is also a deduction.

6 0
3 years ago
Other questions:
  • In the fourteenth century, the Western African Emperor Kankan Musa traveled to Cairo where he gave away much gold, which was in
    12·1 answer
  • What are the two main outcomes of a debt-for-nature swap?
    15·1 answer
  • If $15,000 is deposited in an account paying 1.5% interest per year, compounded continuously, how long will it take for the bala
    8·1 answer
  • Which statement best explains the law of supply?
    8·2 answers
  • To succeed in building a competitive advantage, a company's strategy must aim at Select one:
    6·1 answer
  • Jim and Lisa own a dog-grooming business in Champlain, New York, called JL Groomers. There are many buyers and many sellers in t
    12·1 answer
  • A company that makes modular bevel gear drives with a tight swing ratio for optimizing fork-lift vehicles was told that the inte
    10·1 answer
  • La factura debe tener preimpreso la denominación
    9·1 answer
  • acc 340 Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 7,200 units tha
    7·1 answer
  • Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral deliv
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!