Answer: b. mind games and your money
Explanation:
This falls under Mental accounting where our minds play games with our money by dividing them into various accounts and uses based on our emotions.
Sunk costs play a big part in this because we get so attached to the accounts we have put a lot of effort in while neglecting those we have not or do not want to think about. Maria here is proud of her savings account so much so that she does not see the detrimental effect of not paying off the credit card debt which is rising rapidly.
Her savings account is now a sunk cost and she doesn't realize. This principle can help advise her so she understands the games her mind is playing on her and fix it before the damage gets worse.
Answer:
$0.40
Explanation:
Total Cost of Goods Sold = Sales revenue - Desired profit
Total Cost of Goods Sold = ($2*50,000) - $70,000
Total Cost of Goods Sold = $100,000 - $70,000
Total Cost of Goods Sold = $30,000
Target cost per bottle = Total cost of goods sold / Units sold
Target cost per bottle = $20,000/50,000
Target cost per bottle = $0.40
So, the target cost per bottle will be $0.40
Answer:
the total cost in the flexible budget is $8,100
Explanation:
The computation of the total cost in the flexible budget is shown below;
Variable cost per unit is
= $4000 ÷ 8,000 units
= 0.50 per unit
The total cost for the flexible budget is
= Variable costs+ fixed costs
= 0.5 × 8,200 units + $4,000
= $4,100 + $4,000
= $8,100
Hence, the total cost in the flexible budget is $8,100
Answer:
Normal balance
Explanation:
Accounts are expected to have either debit or credit balance, depending on their classification. The accounting equation of Assets is equal to equity plus liabilities is the basis for account classification. Assets accounts are on one side, while accounts relating to equity and liabilities are on the other.
Accounts have normal balances if the balances at the end of a period are as expected. Assets accounts are expected to have debit balances, while equity and liabilities accounts should have credit balances.
Answer:
100 sweatshirts
Explanation:
To calculate the breakeven, we will first calculate the Contribution earned from each of the unit (sweatshirt) produced and sold.
Contribution per unit = Selling price per unit - Cost of producing one unit
Contribution per unit = $25 - ($10 + $2)
Contribution per unit = $13
Then in order to calculate breakeven, we divide the total fixed cost from the Per unit Contribution earned to determine the no. of unit at which we would be at breakeven (i.e. no profit no loss). As shown below:
Breakeven = Total Fixed Cost / Contribution per unit
Breakeven = ($1,000 + $300) / $13
Breakeven = 100 units of sweatshirt
