Answer:
a) Using mathematical equation 1599 units
b) Using contribution margin 1598 units
Explanation:
Break even point in units in mathematical terms =
= =
= 1599 units
b) Using contribution margin
Contribution = Selling Price - Variable Cost = $650 - $450 = $200
Contribution margin = ( $200/ $650 ) X 100 = 30.77%
BEP = $319,700 / 30.77% = $1,039,000.025
Number of units = $1,038,999.025/$650 = 1598 units
a) Using mathematical equation 1599 units
b) Using contribution margin 1598 units
Answer:
$4,000
Explanation:
It is provided that preference shares are cumulative in nature, that means even if dividend is not paid in current year, the dividend get accumulated.
The net dividend payable to preference capital = 500 shares @ $10 each share = $5,000
Therefore, total dividend of preference shareholders for all the three years = $5,000 3 = $15,000
Total dividend paid till date = $3,000 + $6,000 + $10,000 = $19,000
Therefore, dividend to equity in 2014 = $19,000 - $15,000 = $4,000
Because even if dividend to preference in 2012 was $3,000, the remaining $2,000 would be carried forward.
And before any dividend to equity, first dividend shall be paid to preference and also no dues of preference dividend shall remain in balance.