Answer:
Option B is true.
Explanation:
Giving the following information:
The break-even point in units formula is:
Break-even point= fixed costs/ contribution margin
What changes the break-even point:
A variation in fixed costs.
A variation on the selling price.
A variation in the unitary variable cost.
<u>The higher the fixed costs, the higher the number of units. Lower the contribution margin, the higher the number of units.</u>
Therefore:
a. An increase in contribution margin per unit causes the break-even point in units to increase. False, is the opposite.
b. An increase in fixed costs causes the break-even point to increase. True, now the organization needs to sell more units to cover the fixed costs.
c. The break-even point in sales dollars equals total fixed costs divided by contribution margin per unit. False, in dollars you need to divide it for the contribution margin ratio (contribution margin / selling price).
d. A decrease in the variable cost per unit causes the break-even point in units to increase. False, is the opposite.
Answer:
The correct answer is (A)
Explanation:
People are more successful in housing business who invests for a longer period. Housing prices do not fluctuate rapidly which is why a long term investor who holds the house for a longer period will likely to earn greater profit compared to those who will hold the house for a short-term period. The short-term investor will earn profit but a small percentage whereas long-term investors will earn a greater profit which depends on how long they can hold on to the house.
Answer:
Required 1 : General journal entries
A.
Cash $100,750 (debit)
Capital ; K. Spade $100,750 (credit)
B.
Office Equipment $10,050 (debit)
Trade Payable $10,050 (credit)
C.
Trade Payable $10,050 (debit)
Cash $10,050 (credit)
D.
Trade Receivable $2,700 (debit)
Fees Earned $2,700 (credit)
E.
Rent Expense $1,225 (debit)
Cash $1,225 (credit)
F.
Cash $1,125 (debit)
Trade Receivable $1,125 (credit)
Required 2 : Posting Journal Entries to T - Accounts
Cash Account
<u>Debit</u>
Capital ; K. Spade $100,750
Trade Receivable $1,125
Totals $101,875
<u>Credit</u>
Trade Payable $10,050
Rent Expense $1,225
Balance c/d $90,600
Totals $101,875
Capital Account
<u>Debit</u>
Balance c/d $100,750
Totals $100,750
<u>Credit</u>
Cash $100,750
Totals $100,750
Office Equipment Account
<u>Debit</u>
Trade Payable $10,050
Totals $10,050
<u>Credit</u>
Balance c/d $10,050
Totals $10,050
Trade Payable Account
<u>Debit</u>
Cash $10,050
Totals $10,050
<u>Credit</u>
Office Equipment $10,050
Totals $10,050
Trade Receivable Account
<u>Debit</u>
Fees Earned $2,700
Totals $2,700
<u>Credit</u>
Cash $1,125
Balance c/d $1,575
Totals $2,700
Rent Expense Account
<u>Debit</u>
Cash $1,225
Totals $1,225
<u>Credit</u>
Profit and Loss Account $1,225
Totals $1,225
Fees Earned Account
<u>Debit</u>
Trading Account $2,700
Totals $2,700
<u>Credit</u>
Trade Receivable $2,700
Totals $2,700
Explanation:
All transaction are first record in the journal. Be careful to use the account titles provided by the question.
The Posting to general account is the second stage in accounting. Here account balances to be transferred into the trial balance are established.
Explanation:
1) 35 lawns x 12 weeks = 420 lawns total
420 x $24.25 = $101.85
2) 20 lawns x 12 weeks = 240 lawns total
240 x $24.25 = $58.20
3) 5 lawns x 12 = 60 lawns total
60 x $24.25 = $14.55
————————————————————————————————————————
1) Fixed cost: 420 + variable cost: $24.25
Total cost: $101.85
2) Fixed cost: 240 + variable cost: $24.25
Total cost: $58.20
3) Fixed cost: 60 + variabl cost: $24.25
Total cost: $14.55
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I’m not sure About the last one sorry.
Answer:
The correct answer is letter "C": value of the best alternative not chosen
Explanation:
Opportunity costs represent the return of the option chosen compared to the options that were forgone. <em>It can also be described as the return of the next best available option after having selected one</em>. Opportunity costs help individuals to find out what they "left on the table" after taking a certain decision.
