Answer and Explanation:
The journal entry is shown below:
Interest Expenses $ 40,570
To Discount on bonds payable {($882,000 - $829,100) ÷ 10 years} $5,290
To Cash $35,280
(Being the interest expense is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the discount on note payable and cash as it decreased the assets so cash is credited
The degree of operatingleverage is calculated by the formular
(sales - variable cost) / (sales - fixed cost - variable cost).
In the given question,
sales = $2,000,000
variable cost = $1,100,000
fixed cost = $750,000
The degree of operating leverage is (2,000,000 - 1,100,000) / (2,000,000 - 750,000 - 1,100,000) = 900,000 / 150,000 = 6.
Therefore, the degree of operating leverage is 6.
Answer:
The answer is: D) A good-quality radio particular to that brand of automobile
Explanation:
An order winner is a product´s characteristic that will make a client decide to purchase the product. Order qualifiers are products´ characteristics that makes the product be considered as a purchase option by customers. Order qualifiers are like minimum market standards that products must meet to be able to compete in that market.
In this question the only characteristic unique to the car manufacturer was the good quality radio (order winner). All the other characteristics were similar between brands or car designs.
