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AURORKA [14]
2 years ago
6

The Solar Calculator Company proposes to invest $5 million in a new calculator-making plant that will depreciate on a straight-l

ine basis. Fixed costs are $2 million per year. A calculator costs $5 per unit to manufacture and sells for $20 per unit. If the plant lasts for three years and the cost of capital is 12 percent, what is the accounting break-even level of annual sales
Business
1 answer:
Harrizon [31]2 years ago
8 0

Answer:

The Break-even annual sales= $2,222,222.22

Explanation:

<em>The break-even sales is the amount of revenue that a business must generate that would equate its total costs to total revenue. At the break even sales, the contribution is exactly to total iced cost, and the business makes no profit or loss</em>

Contribution margin ratio = (20-5)/20=75%

Break-even (units) = Total general fixed cost /(selling price- variable cost)

                              = 5,000,000/75%

                            =  $6,666,666.67

The annual sales = $6,666,666.67/3 =   $2,222,222.22  

The Break-even annual sales= $2,222,222.22

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Assume that on February 1, Procter &amp; Gamble (P&amp;G) paid $729,600 in advance for 2 years’ insurance coverage. Prepare P&am
Readme [11.4K]

Answer:

Journal entry on February 1:

Debit Prepaid Insurance $729,600

Credit Cash $729,600

Annual adjusting entry on June 30:

Debit Insurance Expense $152,000

Credits Prepaid Insurance $152,000

Explanation:

On February 1, Procter & Gamble (P&G) paid $729,600 in advance for 2 years’ insurance coverage. The company records the insurance as the prepaid Insurance:

Debit Prepaid Insurance $729,600

Credit Cash $729,600

On Jun 30, the last day of the following 5 months, the company records an adjusting entry that Credits Prepaid Insurance for $152,000 ($729,600 divided by 24 months times the 5 months that will be prepaid as of Jun 30) and Debits Insurance Expense for $152,000

Debit Insurance Expense $152,000

Credits Prepaid Insurance $152,000

7 0
3 years ago
Which of the following statements regarding net operating losses generated in 2020 is true? A) A corporation can carry NOLs back
Butoxors [25]

Answer:

D) A corporation can carry over the NOL indefinitely.

Explanation:

A net operating loss (NOL) can said to exists in a situation where a company's or organization deductions exceed their taxable income and A NET OPERATING LOSS can as well help benefit a company by trying to reduce their taxable income in the future which is why NOLs may now be carried forward indefinitely until such loss is fully recovered, Although they are said to be limited to only 80% of that taxable income in any one tax period which is why these NOLs can be carried forward indefinitely instead of them been limited to only 20 years.

6 0
2 years ago
Read 2 more answers
Edelman engines has $20 billion in total assets. Its balance sheet shows $2 billion in current liabilities, $10 billion in long-
Lemur [1.5K]

<u>Calculation of Edelman's market/book ratio:</u>


The market/book ratio is calculated with the help of following formula:

Market/book ratio = Market price per share / Book value per share


The Book value per share can be calculated as follows;

Book value per share =Common Equity/ Shares of common stock outstanding

= 8,000,000,000 /500,000,000

= 16

Hence ,

Market/book ratio = 25/16 = 1.56


Hence, Edelman's market/book ratio is <u>1.56</u>





5 0
3 years ago
Explain the following: "a broadened view of social responsibility of business calls for more attention to social concerns."
mina [271]
That is right glad u got help!
3 0
2 years ago
A month after your mutual aid agreement is activated for an incident, a participating jurisdiction claims that their responders
vova2212 [387]

Answer:

A. Check the Insurance and Liability section of your mutual aid agreement

Explanation:

Firstly, a mutual aid agreement is a documents that sets the rules or terms under which help or assistance can be provided between two parties, jurisdictions, NGO, etc.

From the above question, it is important that before any step is taken, it is important to check the insurance an liability section of the mutual aid agreement. This will help to ascertain if indeed you are responsible for the healthcare payment of the responders as claimed by the participating jurisdiction.

This helps to clarify who is responsible for the responders.

Cheers

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2 years ago
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