Answer:
Given that,
Flounder Inc. issued convertible bonds = $2,840,000 par value
Interest rate = 7%
Sold for cash = $97
If the bonds had not included the conversion feature, then
Sold for = $95
Therefore, the journal entry is as follows:
Cash A/c ($2,840,000 * 0.97) Dr. $2,754,800
Discount on issue of Bond A/c Dr. $85,200
To 7% Convertible Bonds payable $2,840,000
Answer:
B. Fixed costs divided by unit contribution margin
Explanation:
In sales dollars, Break-Even point = Fixed Costs ÷ Contribution Margin.
Break-Even point in (units) = Fixed Costs / (Sales price per unit - Variable costs per unit).
The Break even point is a measure of which a company can determine if when the product its manufactured or produced will start to be profitable.
Answer:
true ......................
Answer: The project scope will increase
Explanation:
From the question, we are informed that there is a project manager who is halfway through a project and then his customer contacts him to say that he has been authorized to provide additional funds for the project.
This will most likely increase the project scope. The project scope simply means the work that is needed to be done in order for a particular project to be accomplished. Due to the increase in funds, it means that more work will be expected.
Answer:
He could afford to spend $133,411 for the device now.
Explanation:
The maximum the surgeon could afford for the device is equal to the sum of present value of the lawsuit costs that he can avoid in year 2 and year 5 which is:
+ Year 2: 600,000 * %out-of-pocket cost for the law suit = 600,000 * 10% = $60,000;
+ Year 5: 1,350,000 * %out-of-pocket cost for the law suit = 1,350,000 * 10% = $135,000.
=> The amount he can afford for the device = 60,000 / 1.1^2 + 135,000 / 1.1^5 = $133,411.
So, the answer is $133,411.
