Answer:
26,000 units
Explanation:
The computation of the new break even point in units is shown below:
= (Fixed expenses ) ÷ (Contribution margin per unit)
where,
Fixed cost = $525,000 + $125,000 = $650,000
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $50 - $25
= $25
So, the break even point in units is
= $650,000 ÷ $25
= 26,000 units
The feature of the insurance contract that is being described above is the aleatory contract. It is the type of contact where the individual that has been involved can't handle or control the event that could happen to him or her. It is a way of having uncertain events happening in the individual such as death or natural disasters that she or he could face.
For equipment purchased from the United States, European businesses will pay less in euros.
<h3>What would happen if the US dollar increased in value relative to the euro?</h3>
The dollar now "buys" more euros if the exchange rate between the two currencies rises to $1 for 0.94€. As a result, purchasing European items is now more affordable. As U.S.-made goods are now more expensive, U.S. exports would decrease while imports from nations that use the euro would increase.
<h3>What causes the value of the US dollar to rise?</h3>
An increase in the value of one currency in comparison to another is known as currency appreciation. For a variety of factors, including governmental policies, interest rates, trade balances, and business cycles, currencies appreciate against one another.
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Johnson Controls and Dodge engaged in<u> Reverse Marketing.</u>
<h3>What is Reverse Marketing</h3>
Reverse Marketing can be defined as a type of marketing in which the customer are the one that patronized your a company business instead of the company creating brand or product awareness to the consumer.
This type of marketing strategy enables customer to be attracted to your business just as in the case of Johnson controls and its consumer Dodge.
Therefore Johnson Controls and Dodge engaged in<u> Reverse Marketing.</u>
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As organizations that use work order costing maintain track of materials and other resources for each project item, this method often necessitates more thorough record keeping than a process costing. However, in systems that use process costing, each production or process department has its own inventory account and aggregates expenses.
<h3>How are the 2 systems similar?</h3>
- Both approaches serve the same fundamental objectives: to provide a framework for calculating unit product cost and to assign material, labor, and overhead costs to items.
- The same fundamental manufacturing accounting principles are used by both systems, including production overhead, raw materials, work in progress, and finished goods.
- In both systems, the cost flow through the manufacturing accounts is essentially the same.
<h3>What are the differences between the two?</h3>
There are two reasons why work order costing and process costing differ from one another. The first is that a process costing system has a flow of units that is essentially continuous, and the second is that these units are interchangeable. Since each order is just one of many that are filled from a continuous flow of almost identical units from the manufacturing line, it makes no sense to try to identify materials, labor, and overhead costs with a specific order from a customer (as we do with job order costing). Under process costing, costs are accumulated by the department as opposed to orders, and they are then uniformly distributed to all units that go through the department over the course of a time period.
The fact that process costing does not employ the job cost sheet since its emphasis is on departments is another distinction between the two costing methodologies. For each department that works on items, a production report is created as opposed to a task cost sheet. The production report fulfills a number of purposes. It gives a summary of how many units pass through a department in a given time frame and computes unit costs. Additionally, it displays the expenses incurred by the department and the decision made regarding such expenses. In a process costing system, the department production report is a crucial document.
Therefore, above are all the differences and similarities between the 2 systems.
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