Answer:
(a) 65.22%
(b) $28,800; $38,400; $9,600
Explanation:
Total cost:
= variable cost + fixed cost
= (12,000 × 0.90) + 18,000
= 28,800
Total Revenue:
= quantity of cupcakes sold × selling price of each cupcake
= 12,000 × 3.2
= 38,400
Profit:
= Total revenue - Total cost
= 38,400 - 28,800
= 9,600
Break even sales:
= Fixed cost ÷ contribution margin
= 18,000 ÷ (3.2 - 0.90)
= 7,826.087
Break even volume in capacity:
= Break even sales ÷ Cupcakes produced
= 7,826.087 ÷ 12,000
= 65.22%
(the flexibility basically)
definition-able to resume its normal shape spontaneously after contraction, dilatation, or distortion.
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For the purpose of accounting, there are three types of expenditure.
1) Capital Expenditure
It is the amount incurred
in acquiring long term assets like land, buildings, equipments (which
are used for the purpose of earning revenues). These costs are reflected
in the account of Property, Plant and Equipment.
2) Revenue
Expenditure
It is the cost incurred in one accounting year wherein the benefits
are also enjoyed in the same period only. It does not increase the
earning capacity of the business, instead, it maintains the existing
earning capacity of said business. This expenditure is recurring in
nature like salaries and wages, selling and distribution expenses.
3) Deferred
Revenue Expenditure
It is a revenue Expenditure which has been incurred
within the current accounting year but its benefit will be extended to a
number of years. This cost is charged to the Profit and Loss account.
Example of this is advertising cost.
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Answer: AKA B
Explanation: did it on edge 2020
