Answer:
The break even point of a company shows how much of your goods or services you need to sell in order to cover all of your costs. It will then give you an idea of how much you need to sell in order to become profitable.
Explanation:
Look at the audience
and be confidents
Answer:
The $12 million is the net increase in the denominator of the EPS fraction if the market price of the common shares averages $5 per share during 2018.
Explanation:
1. The journal entry is shown below:
For December 31, 2017:
Compensation Expenses A/c Dr ($18 million × $5 per share) ÷ 3 = $30 million
To Restricted Shares $30 million
(Being compensation expenses recorded for 2017 year)
For December 31, 2018:
Compensation Expenses A/c Dr ($18 million × $5 per share) ÷ 3 = $30 million
To Restricted Shares $30 million
(Being compensation expenses recorded for 2018 year)
2. The net increase in the denominator of the EPS fraction for 2018 year is shown below:
= 2018 shares - Restricted shares
= $30 million - $18 million
= $12 million
Hence, the $12 million is the net increase in the denominator of the EPS fraction if the market price of the common shares averages $5 per share during 2018
