Credit limit refers to the maximum amount of credit a financial institution extends to a client through a line of credit as well as the maximum amount a credit card company allows a borrower to spend on a single card.
An increase in the price of coffee beans can be expected to increase the demand for pie.
So, in the market if the price of coffee beans increases, quantity demanded for coffee will decrease. As, the coffee in turn is a complement to pie the consumers using coffee will now shift themselves to pie, unless the price decreases for coffee. Thus, the demand for pie is expected to increase now.
Several events could lead to such a change, an increase in population , an increase in incomes, or an increase in the price likely to increase the quantity of coffee demanded at each price.
Hence, this represents the Law of Demand.
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Answer:
Break-even sales = $800,000.
Explanation:
<em>The beak-even point is the units of products to be sold or number of customers to be served to enable a business to cover exactly its total cost from the revenue. At the break-even point, the business makes no profit or no loss because the contribution from sales exactly equals the total fixed cost</em>
<em>Break-even in sales revenue = Total fixed cost/Contribution margin</em>
<em>Contribution margin (%) = Contribution/ sales × 100</em>
= 160,000/640,000
= 0.25 × 100
= 25%
<em>Fixed cost = Contribution - operating income</em>
= 160,000- -( 40,000)
= 160,000 + 40,000
= 200,000
<em>Break-even point sales = 200,000/25%</em>
= $800,000.
Answer:
March 15,
Dr. Dividend $20,520,000
Cr. Dividend Payable $20,520,000
April 13,
Dr. Dividend Payable $20,520,000
Cr. Cash $20,520,000
Explanation:
A dividend is announced and paid after some days, so the journal entries for both event will be recorded separately.
At The time of Declaration no payment is made, only a liability is created against the dividend payment.
Dividend Value = $0.095 x 216,000,000 shares = $20,520,000
Payment will be made by debiting the dividend payable account to adjust the liability account and Crediting cash for the payment of cash dividend.
Answer:
Y and X
Explanation:
Product Additional Additional Costs Difference Decision Revenues
W 40000 60000 -20000 Sell Now
X 8000 4000 4000 Process On
Y 100000 32000 68000 Process On
Z 4000 20000 -16000 Sell Now