Question:
If the first copy cost of a music video is $223,000 and the marginal cost is $0, then how many copies should the firm sell in order to break even if the price was $10 each?
A) 2,230
B) 223,000
C) Zero
D) 22,300
Answer:
The correct answer is B.
Explanation:
Step 1 - Relationship between Marginal Cost and Break Even Price (BEP)
This is given as:
BEP =
Step Two
First compute the denominator
= 1-(0/10)
= 1-0
= 1
Step 3
Therefore BEP = 223,000/1
= <u>$223,000</u>
<u></u>
Cheers!
<span>It locks-in the customers. The customer feels that they get a better and faster experience at the store with RFID-enabled card readers, so they feel compelled to return in the future. This creates repeat business and, likely, higher profits for the company.</span>
Answer:
b. Job fairs.
Explanation:
Job fairs is the quickest method to bring the right talent as at the job fairs the people who wants to look for the job presently and on urgent basis so it will be considered. Also it considered the young and the latest talent plus the right candidates that hired in some days. Due to this, it saves the cost also received the best talent
So as per the given situation, the option b is correct
Answer:
the required sales needed to achieve management’s target net income of $60,000: $900,000
Explanation:
The required sales needed to achieve management’s target profit figure are calculated by using following formula:
The required sales = (Total fixed cost + Targeted profit) / Contribution margin ratio.
For Rivera Company, variable costs are 70% of sales. The contribution margin ratio is calculated by using following formula:
Contribution margin ratio = (Sales - Total Variable cost)/Sales = (Sales - 70% of sales)/Sales = 30%
The contribution margin ratio = 30%
The required sales = ($210,000 + $60,000)/30% = $900,000
Answer:
$23,000
Explanation:
Before recording the journal entry, first we have to determine the pension expense amount which is shown below:
Pension expense = service cost + interest cost - expected return on plan assets
= $18,000 + $5,000 - $10,000
= $13,000
Now the journal entry would be
Pension expense A/c Dr $13,000
Plan asset A/c Dr $10,000
To PBO A/c $23,000
(Being the annual pension cost is recorded)
All other information which is given is not relevant. Hence, ignored it