Answer:
The total annual cost at point of indifference will be $380000
Explanation:
The point of indifference is a point where both the options will have equal annual cost and the firm will be indifferent in choosing both the options. To calculate the total cost at the point of indifference, we first need to equate both the cost equations to calculate the point of indifference in units and then calculate the cost at that point.
Let x be the number of units.
The total cost for Atlanta = 20x + 80000
The total cost for Phoenix = 16x + 140000
The point of indifference in units will be,
20x + 80000 = 16x + 140000
20x - 16x = 140000 - 80000
4x = 60000
x = 60000 / 4
x = 15000 units
The total cost at point of indifference will be = 20*(15000) + 80000 = $38000
This can be verified as = 16 * (15000) + 140000 = $380000
Answer:
B) Income from subsidiary is recognized from date of acquisition to year-end.
Explanation:
When an individual or a company purchase another business, they are responsible for all the gains and losses generated by that business starting from the exact moment that the sales transaction has been completed. E.g. if I buy a business on January 20, at 10 AM, I am completely responsible for the things that happen in the company after 10 AM.
Answer and Explanation:
The computation is shown below:
a. The break even quantity is
= Fixed cost ÷ (selling price per unit - variable cost per unit)
= $26,000 ÷ ($1 - 0.35)
= $26,000 ÷ 0.65
= 40,000
b. The price is
Let us assume the price per pen be x
As we know that
Profit = Revenue - costs
$16,000 = (x)(41,000) - $26,000 - .35(41,000)
$16,000 = 41,000x - 40,350
$56,350 = 41,000x
x = $1.37
Answer:
True
Explanation:
As we know that the ending balance of retained earnings is computed by considering the following equation
= Starting balance of retained earnings + net income - dividend paid
Since the net income which is come by subtracting the expenses from the revenue and the dividend paid is debited or credited at the time of passing the journal entries instead of retained earning account because these above accounts are got affected.
Like expenses account are always debited while the income account are always credited
