Answer:
The operating profit under actual budget gives $833,000 while flexible budget gives $982,500 which results in an unfavorable variance of $149,500
Explanation:
In computing the final variance I started with sales revenue for the actual production and sales of 230,000 under both actual and flexed budgets.
This approach implies that the original budget was revised to reflect actual quantity produced and sold but the budgeted amounts were used under flexed budget while the actual amounts were applied under the actual budget preparation.
Find the details in the attached.
Answer:
5,409 books
Explanation:
to calculate break even point in units we can use the following formula:
break even point in units = total fixed costs / contribution margin per unit
- total fixed costs = $53,000
- contribution margin per unit = sales price - variable costs = $12 - $2.20 = $9.80
break even point in units = $53,000 / $9,80 = 5,408.16 ≈ 5,409 books
in $, that would equal = 5,409 books x $12 per book = $64,908
Answer:
The correct answer is unwillingness of borrowers to obtain loans from banks to invest in factories or expansion of the firm.
Explanation:
Solution
<em>Given that:</em>
Leakage problem occurs or happens within an economy when the money goes out of the economy, which leads to a loss in the economic value of goods and services, and also leads to loss in profits making.
This would lead to an unwillingness of borrower's to obtain loans from banks in the expansion of the firm or to invest in factories.
The disadvantage of extending credit to customers is that the cost may <u>exceed </u>the additional sales revenue received through credit transactions. hence, Option C is the correct statement.
<h3>What do you mean by extending credit to customers?</h3>
The method of extending credit to customers permits them to buy items and services and pay for them later on. Offering credit is usually a win-win for each trader and buyer.
Customers have greater buying strength and have a tendency to shop for greater in the event that they are not restrained to the cash they have got at the time of the sale.
The missing information from the above question is given below:
increase
be less than
exceed
Thus, The disadvantage of extending credit to customers is that the cost may <u>exceed </u>the additional sales revenue received through credit transactions. hence, Option C is the correct statement.
Learn more about extending credit:
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Answer:
B. $450
Explanation:
Interest rate = 9% = 0.09
Account receivable = $20,000
Interest = 0.09 x 20,000
= $1,800
At December 31, Black should record interest revenue of
1,800 x (90/360)
= 1,800 x 0.25
= $450
The answer is $450
