Answer:
Option (B) is correct.
Explanation:
Given that,
Selling price of a product = $140 per textbook
Variable expenses = $25 per book
Books sold per year = 6,000 books (It is the break even point)
The break even point indicates that there is no profit or loss incurred at the sales.
This means that the sales revenue is equal to the total cost incurred to produced these goods.
Sales per unit - Variable cost per unit - Fixed costs per unit = 0
$140 - $25 - Fixed costs = 0
$115 = Fixed costs per unit
Therefore, the total amount of fixed cost is calculated as follows:
= Fixed cost per unit × Number of books sold
= $115 × 6,000
= $690,000
Answer: II. Issuance of a 200% common stock split
Explanation:
Earnings per share (EPS) is Net income - Preferred dividend / Average number of shares outstanding
We are concerned only with the denominator which is the average number of shares outstanding. Therefore the third option which is issuance of preferred stock dividend will not have any affect. However, in the case of Diluted EPS this information would have helped.
Also, since the first option is related to property dividend it is again not relevant to EPS. So that option is also negated.
The second option talks about a common stock split. During the year if there is a stock split then it affects the number of common shares which will affect the denominator of EPS and that is why it is the only relevant option for us.
1. Embrace transparency. Transparency isn't just positive for employees
2. Recognize and reward valuable contributions.
3.Cultivate strong coworker relationships
4. Embrace and inspire employee autonomy
5. Assist Your Team Members in Reaching Goals
The lower the price the more willing people are to supply the product, and the cheaper it will be to supply it, but it also could make consumers think the product is junk.
Answer:
$9 million, $11 million and $111 million
Explanation:
The computation is shown below
(a) For depreciation, it is
= Initial amount × depreciation rate
= $100 million × 9%
= $9 million.
Now
Net Investment is
= Gross investment - Depreciation
= $20 million - $9 million
= $11 million
(b) And, the amount of next year's beginning capital stock is
= Initial capital stock + gross investment - depreciation.
= $100 million + $20 million - $9 million
= $111 million
We simply applied the above formulas
