Answer:
Operating revenue, R = $300000
Operating Cost, C = $280000
Fixed Cost, F = $40000
Salvage value of fixtures, S = $15000
If it remains open, its value will be = R - C - F + S = 300000 - 280000 - 40000 + 15000 = -$5,000
If the salon closes down, its value will be = S - F = 15000 - 40000 = -$25000
.
Fran should remain open as the value of the salon if remaining open (-$5,000) is more than the value of closing it (-$25,000).
40,000 units and $400,000 are the break-even point in units and dollars respectively.
<u>For units:</u>
$200,000/5 = 40,000
<u>For dollars:</u>
40,000 x $10 = $400,000
<h3><u>What is a </u><u>
break-even point </u><u>?</u></h3>
The break-even threshold is reached when overall costs and total revenues are equal, leaving your small firm with no net benefit or loss. In other words, you've achieved the point in manufacturing when the income from a product matches the cost of manufacture.
This is a crucial calculation to include in your business strategy for every new venture. Potential investors want to know when they may anticipate a return on their investment as well as the rate at which it will occur. This is due to the fact that some businesses may take years before becoming profitable, frequently losing money in the initial months or years before achieving break-even. Break-even point is crucial in every company plan given to a potential investor because of this.
To view more questions on break-even point in income, refer to:
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True, When establishing general ledger accounts opening balances will always be zero. A ledger is a full record of all transactions over the lifetime of a company. When the company is first starting out, there is a zero balance because transactions have not been put on the ledger yet. The longer the company is in business, the more transactions there will be on the ledger.
Answer:
The correct answer is option C.
Explanation:
US demand for Japanese products will create a supply of US dollars and demand for Japanese yen in the foreign exchange market.
This is because when the US consumers purchase Japanese products they need to pay in Japanese yen, so they will exchange US dollars for Japanese yen. Consequently, this will lead to an increase in the supply of US dollars and a demand for Japanese yen.