Answer:
100 sweatshirts
Explanation:
To calculate the breakeven, we will first calculate the Contribution earned from each of the unit (sweatshirt) produced and sold.
Contribution per unit = Selling price per unit - Cost of producing one unit
Contribution per unit = $25 - ($10 + $2)
Contribution per unit = $13
Then in order to calculate breakeven, we divide the total fixed cost from the Per unit Contribution earned to determine the no. of unit at which we would be at breakeven (i.e. no profit no loss). As shown below:
Breakeven = Total Fixed Cost / Contribution per unit
Breakeven = ($1,000 + $300) / $13
Breakeven = 100 units of sweatshirt
Here, there's an increase in cash and a decrease in receivables. Therefore, the journal entries will be as follows
Dr. Cash .... 85000
Cr. Receivables ..... 85000
Cash borrowed against receivables
Can you show the answer choices?? I might be able to help.
Entrepreneurs are people who assume the risk of business ownership
Answer:
A) employers of a business
Explanation:
Employers in business may be the management or business owners. As owners or managers, they are interested in the financial performance of the company. They are internal users of accounting information. Internal users evaluate and analyze accounting information to make critical decisions and take necessary actions to improve business performance and profitability.
External users are the lenders, investors, government agencies, suppliers, and the general public. Each will analyze the accounting information to guide them on how to further their interest in the business.
