Answer:
1a. 3,000 units
1b. $1,050,000
2. See attachment.
3. contribution margin income statement
Sales ($350 × 7,000 units) $2,450,000
Less Variable Cost ($245 × 7,000 units)) ($1,715,000)
Contribution $735,000
Less Fixed Costs ( $315,000)
Operating Profit $420,000
Explanation:
Break-even point (sales units ) = Fixed Cost ÷ Contribution per unit
= $315,000 ÷ ($350 - $245)
= 3,000
Break-even point (sales dollars) = Fixed Cost ÷ Contribution Margin Ratio
= $315,000 ÷ ($105/$350)
= $1,050,000
If a worker’s nominal wage rate increases from $10 to $12 per hour and at the same time the general price level increases by 10 percent, the worker’s real wage
<u>Answer: </u>7.1 92000
7.2 70000
7.3 30000
7.4 -40000
<u>Explanation:</u>
7.1 Explicit cost means the cost which occurs to meet the expenses for the business operations
The explicit cost is calculated below.
Wages and salaries 700000
Interest on bank loan 50000
Cost supplies 150000
Depreciation 20000
Total Explicit cost $920000
7.2 Implicit cost means the opportunity cost that is foregone by investing in other type of investment. Implicit cost is not incurred by the business actually.
Risk free return 30000
Risk premium 40000
Total Implicit cost $70000
*7.3 The difference between the cost and the revenue provides the accounting profit of the firm.
Accounting Profit
= Revenue - Explicit Cost
=950000 - 920000
Total accounting profit firm= $30000
7.4 Economic profit means the profit arrived by the firm after deducted the total of explicit and implicit cost.
Economic Profit
=Revenue - (Explicit Cost + Implicit Cost)
=950000 - (920000 + 70000)
Total Economic Loss incurred= $-40000
Answer:
Explanation:
Amount McCoy’s Fish House should record as the cost of the land = Purchase price of land + Title insurance + Back taxes for property + Cost of removing the building + Cost of leveling the land - selling price pf salvaged materials
= $920,000 + $2,200 + $8,200 + $46,000 + $10,200 - $3,400
= $983,200
Property tax of $4,200 paid in the current year is included in the income statement as an expense and is not included in the cost of land.
Therefore, cost of land is $983,200
Answer:
a
Explanation:
when you go to the doctor, you pay copay
