Answer:
A. 42%
Explanation:
Given the above information,
Contribution margin ratio = (Selling price - Unitary variable cost) / Selling price
Selling price = $2,122,200 / 262,000 = $8.1
Total variable cost = Variable manufacturing expense $975,200 + Variable selling and administrative expense $260,400 = $1,235,600
Unitary variable cost = $1,235,600 / 262,000 = $4.72
Contribution margin ratio = (8.1 - 4.72)/8.1 = 41.73% = 42%
Answer:
Part A:
Liabilities=$285,000
Part B:
Liabilities=$255,000
Equity=$255,000
Explanation:
General Rule of Assets, liabilities and equity
Assets= Liabilities+Equity
Part A:
Assets=$710,000
Equity=$425,000
Liabilities=?
$710,000=Liabilities+$425,000
Liabilities=$710,000-$425,000
Liabilities=$285,000
Part B:
Liabilities=Equity
Replace Equity by liabilities
Assets=Liabilities+Liabilities
$510,000=2*Liabilities
Liabilities=$255,000
Equity=$255,000
Answer and Explanation:
The computation is shown below:
The Selling price per unit = $225,000 ÷ 7500 = $30
ANd,
Variable cost per unit = $135,000 ÷ 7500 = $18
a) Breakeven point = Fixed cost ÷ Contribution margin per unit
= $48,000 ÷ ($30 - $18)
= 4000 units
b) Breakeven dollars = Breakeven point × selling price per unit
= 4000 × 30
= $120,000
C) Margin of Safety in dollars = Sales Revenue - Breakeven dollars
= $225,000 - $120,000
= $105,000
d) Margin of Safety in percent
= $105,000 ÷ $225,000
= 46.67%
Answer:
The correct answer is letter "D": the services of an independent auditor.
Explanation:
Every time an internal auditor feels there is inaccurate information on the company's books, <em>requesting for an external audit of a Certified Public Accountant (CPA) is a valid option</em>. Auditors must clarify any piece of information that seems ambiguous in a firm's general ledger. Otherwise, if mistakes or fraud are found, the auditor can be considered an accomplice of such activities.
