Answer:
(a) 242,500 units
(b) 267,500 units
Explanation:
(a) Break-even point in sales units:
= Fixed costs ÷ (Selling price per unit - Variable cost per unit)
= $4,850,000 ÷ ($80 - $60)
= 242,500 units
(b) Break even point in sales units if the company desires a target profit of $500,000:
= (Fixed cost + Target profit) ÷ (Selling price per unit - Variable cost per unit)
= ($4,850,000 + $500,000) ÷ ($80 - $60)
= $5,350,000 ÷ $20
= 267,500 units
Answer:
Faldo Corp
Customers are paying late by 6.5 days (51.5 - 45)
Explanation:
DSO = Accounts Receivable/Sales last year * 365 days
= $60,000/$425,000 * 365
= 51.5 days
Customers are paying late by 6.5 days (51.5 - 45)
b) Faldo Corp's Days Sales Outstanding (DSO) is an estimate of the number of days it takes Faldo to collect its outstanding accounts receivable. This means that DSO measures how long it takes Faldo's customers to pay an invoice. Faldo can calculate its DSO by dividing the total accounts receivables of last year by the total credit sales of last year. This is then multiplied by 365 days.
Answer:
A
Explanation:
In this question, we are to evaluate the validity of the options. We were told he used the acquisition method. When do we use the acquisition method?
The acquisition method is used when a company is taken in by another company by using a merger, acquisition or through a consolidation.
Now, out of all the options presented, we can see that the selling price less the acquisition value is recorded as a realized gain or loss.
<u>Answer</u>:
Boundaryless career pattern is similar as temporary workers.
<u>Explanation</u>:
“Boundaryless career” has been a new perspective in any organisation these days. This type of career pattern provides the employees flexibility in terms of working hours. They pay them high wages for their excellent skill set.
A person works with several organisations at a single point of time and quickly develops his career. Knowledge of such people is quite high, and companies gain from their expertise. As given in the question, Sean is provided flexibility by allowing him to work from home so that he can take care of his parents. So, this is a boundaryless career pattern.
Answer:
The correct answer is D
Explanation:
Marginal principle is the principle which is referred to an increase in the activity level when the marginal advantage exceeds or more than the marginal cost.
So, the marginal principle of retained earnings would be when it will provide the higher rate of return than the shareholders who could achieve after paying taxes on the dividends.
