Answer:
$14,000
Explanation:
Amount of interest expense = [(Bond issued by 'S' company x 9%) - Amount of
premium x (unsold bonds / Bonds issued)]
= (300,000 x 0.09) - 60000/10 x 200,000/300,000
= (27,000 - 6000) x 0.66667
= 21,000 x 0.66667
= $14,000
Answer: Variable cost pricing
Explanation:
Marianne wants to sell in Mexico by setting the selling price in such a way that she adds the total variable cost to the markup. This way she would meet her cost and gain some level of profit.
Answer:
b. $19500000.
Explanation:
Break-even point is the level of sales on which business has no profit no loss situation. The business only covers the variable and fixed cost at this point.
Total Contribution can be determined by calculating adding estimated contribution of each division.
Total Contribution ratio = (65% x 30%) + (35% x 50%) = 19.5% + 17.5% = 37%
Fixed cost = $7,215,000
Break-even point = Fixed cost / Contribution margin ratio = $7,215,000 / 37% = $19,500,000
Answer:
The correct journal entries should be:
January 1, Year 3
Dr Notes Payable account 10,000
Cr Cash account 10,000
Explanation:
Since Cash account is an asset, it should be credited when it decreases.
Since Notes Payable account is a liability, it should be debited when it decreases.
Answer:
is concerned with the expansion of a small business into a large corporation
Macroeconomics is the study of the economy as a whole. It studies aggregate variables: economic variables like employment or inflation, but in a large scale.
Because large corporations tend to have a big effect on the overall economy of the regions where they operate, macroeconomics is naturally concerned with them.
Is concerned with the expansion and contraction of the overall economy.
Macroeconomics, as the study of the economy as a whole, is concerned with how the overall economy behaves in time.
