Answer:
Break-even point (dollars)= $3,087,500
Explanation:
Giving the following information:
Fixed Cost per Unit $50 Selling Price per Unit $325 Variable Costs per Unit $175 Target Operating Income $200,000.
Break-even point (dollars)= (fixed costs + profit) / contribution margin ratio
Break-even point (dollars)= (175*7000 + 200,000)/[(325 - 175)/325]= $3,087,500
Answer:
A or C
Explanation:
by labeling it means to understand, but B and D were wrong because this is not that topic
It defines the purpose. It serves as a guideline for decision-making. It could also attract support and donations.
Answer:
c. $60319000
Explanation:
My actual calculation was not exactly that number, it was NZ$60,318,000, but it is the closest option. You calculate it by multiplying the present value x (1 + interest rate) = $60,000,000 x (1 + 0.0053) = $60,000,000 x 1.0053 = $60,318,000
The question only asks to calculate the interest in NZ$, not to convert them to US$.
Answer: a. At the end of Year One, the company's liabilities are understated.
Explanation:
Under the Accrual basis of Accounting, revenue should be recorded for only jobs that have been completed. In other words, only earned revenue should be recorded. Revenue that has not been earned but yet received, is to be termed Deferred revenue and should be treated as a current liability.
In this scenario, there are steps that have not been completed so some of the revenue received should be termed deferred revenue. These should therefore be in current liabilities and because they were not, the liabilities for the end of year 1 will be understated.
