Answer:
The correct answer is letter "B": It is taking deposits and progress payments.
Explanation:
Advance deposits and progress payments are the amount of money taken by an organization as part of the total amount charged for a good or service that is going to be provided. It is a form of endorsement that proves the buyer has a real intention in acquiring the good or service but also helps the organization to have immediate cash flow to pay for expenses such as the raw material that will be used for production (in the case of a good).
Answer:
Products Selling price Unit variable cost
$ $
Junior 50 15
Adult 75 25
Expert <u>110 </u> <u> 60</u>
Total <u> 235 </u> <u> 100</u>
The sales price per composite unit = $235
The contribution margin per composite unit
= Composite selling price - Composite unit variable cost
= $235 - $100
= $135
Break-even point in units
= <u>Fixed cost</u>
Contribution per unit
= <u>$114,750</u>
$135
= 850 units
Break-even point in dollars
= Break-even point in units x Composite selling price
= 850 units x $235
= $199,750
Income Statement
$
Total contribution ($135 x 850 units) 114,750
Less: Fixed cost <u>114,750</u>
Net profit <u> 0</u>
Explanation:
Sales price per composite unit is the aggregate of all the selling prices.
Contribution margin per composite unit equals composite selling price minus composite unit variable cost.
Break-even point in units is fixed cost divided per composite contribution margin per unit.
Break-even point in dollars equal break-even point in units multiplied by selling price.
Income statement is prepared by deducting the total fixed cost from the total contribution.
Answer:
The answer is Credit.
Explanation:
Net loss can be thought of as a <u>Credit </u>to the Capital account.
Answer: $40,000
Explanation:
The gain from discounted operations assuming no income taxes, is the gain from the sale of the asset less the net operating losses in the period.
= Gain from Sales of Asset - Net losses in period
= 90,000 - ( 20,000 + 30,000)
= $40,000
