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3 years ago

A book publisher has fixed costs of $380,000 and variable costs per book of $11.00. the book sells for $27.00 per copy.

Business

1 answer:

Rus_ich [418]3 years ago

7 0

The book publisher needs 380,000 in margins on its books to cover its fixed costs.

The publisher makes a profit of 27-11= 16 dollars per book. This is the book’s contributing margin.

To break even, the profits on the books must equal the fixed costs.

380,000 / 16 =23,750
The firm must sell 23,750 books to break even.

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Answer:

Net Income = $1,250

Explanation:

Benning Co.

Income Statement

For the Month Ended July 31, 2010

Particulars $ $

Revenues 6,000 (1)

Expenses:

Wages Expense 2,600 (2)

Supplies Expense 1,000 (3)

Utilities Expense 600

Insurance Expense 400

Depreciation Expense 150

Total expenses 4,750

Net Income $1,250

Note:

1. Revenues = 5,500 + 500 (Adjustment 5) = $6,000

Performed services not recorded will add.

2. Wages expense = $2,300 + 300 (Adjustment 3) = $2,600

Accrued wages not paid will add to the wages expense.

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Supplies expense includes supplies on hand will decrease the supplies expense.

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3 years ago

Smith buys and sells equity securities. On December 15, 2021, Smith purchased $542,000 of Jones shares and elected the fair valu

Kamila [148]

Answer:

$46,000

Explanation:

We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .

DATA

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3 years ago

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4 years ago

Companies transmit over the internet because the internet ________.

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3 years ago

On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudou

Naddika [18.5K]

Answer:

The correct answer is B. (3,375) = NA + (3,375) NA − 3,375 = (3,375) NA.

Explanation:

The question asks for the effect of the adjusting entry on December 31, Year 1, that is, the creation of the 3% allowance for uncollectible debts.

Allowance for bad debts = 3% x $112,500 = $3,375

Its effect is as follows.

Assets: Since accounts receivable (an asset) is reduced, assets are reduced by $3,375.

Liabilities: No effect.

Equity: As Equity = Assets - Liabilities, the net effect is to reduce the equity by $3,375.

Revenue: No effect.

Expenses: Sales worth $3,375 is written off as an expense. Hence, total expenses increase by $3,375.

Net increase: As revenue remains unchanged while expenses increase by $3,375, the net increase is a negative of $3,375.

Cash flow: No effect, because there is no exchange of cash since the amount of $3,375 was never received by Loudoun Corporation.

These entries correspond to option B. which is thus the correct answer.

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3 years ago