AF
Ashlee Fortenberry
Answers (6)
AF
Answered
Which of the following will be an effect of the Fed selling open market securities?
A) Business investment will be discouraged.
B) Household savings will be discouraged.
C) Household consumption will be encouraged.
D) None of the choices are correct.
A) Business investment will be discouraged.
B) Household savings will be discouraged.
C) Household consumption will be encouraged.
D) None of the choices are correct.
On Jul 17, 2024
A
AF
Answered
If the CPI is 125,the prices have _____ since the base year.
A) fallen by 125 percent
B) fallen by 75 percent
C) risen by 25 percent
D) risen by 75 percent
E) risen 125 percent
A) fallen by 125 percent
B) fallen by 75 percent
C) risen by 25 percent
D) risen by 75 percent
E) risen 125 percent
On Jun 16, 2024
C
AF
Answered
Henning Co. estimates that variable costs will be 70% of sales and fixed costs will total $2160000. The selling price of the product is $10 and 750000 units will be sold.
Instructions
Using the mathematical equation
(a) Compute the break-even point in units and dollars.
(b) Compute the margin of safety in dollars and as a ratio.
(c) Compute net income.
Instructions
Using the mathematical equation
(a) Compute the break-even point in units and dollars.
(b) Compute the margin of safety in dollars and as a ratio.
(c) Compute net income.
On Jun 15, 2024
(a)
Break-even sales in units
$10X=$7X+$2,160,000$3X=$2,160,000X=720,000 units \begin{aligned}\$ 10 X & =\$ 7 X+\$ 2,160,000 \\\$ 3 X & =\$ 2,160,000 \\X & =720,000 \text { units }\end{aligned}$10X$3XX=$7X+$2,160,000=$2,160,000=720,000 units
Break-even point in dollars X=.3X+$2,160,0003X=$2,160,000X=$7,200,000\begin{array}{c}\text { Break-even point in dollars } \\X=.3 X+\$ 2,160,000 \\3 X=\$ 2,160,000 \\X=\$ 7,200,000\end{array} Break-even point in dollars X=.3X+$2,160,0003X=$2,160,000X=$7,200,000
(b)
Margin of safety in dollars $7,500,000−$7,200,000=$300,000 Margin of safety ratio $300,000÷$7,500,000=4%\begin{array}{l}\text { Margin of safety in dollars }\\{\$ 7,500,000-\$ 7,200,000}=\$ 300,000 \\\\\text { Margin of safety ratio }\\{\$ 300,000 \div \$ 7,500,000}=4 \%\end{array} Margin of safety in dollars $7,500,000−$7,200,000=$300,000 Margin of safety ratio $300,000÷$7,500,000=4%
(c)
Net Income Sales $7,500,000 Variable Costs (5,250,000) Fixed Costs (2,160,000) Net Income $90,000\begin{array}{lc}\text { Net Income }\\\text { Sales } & \$ 7,500,000 \\\text { Variable Costs } & (5,250,000) \\\text { Fixed Costs } & (2,160,000) \\\quad \text { Net Income } & \$ 90,000\end{array} Net Income Sales Variable Costs Fixed Costs Net Income $7,500,000(5,250,000)(2,160,000)$90,000
Break-even sales in units
$10X=$7X+$2,160,000$3X=$2,160,000X=720,000 units \begin{aligned}\$ 10 X & =\$ 7 X+\$ 2,160,000 \\\$ 3 X & =\$ 2,160,000 \\X & =720,000 \text { units }\end{aligned}$10X$3XX=$7X+$2,160,000=$2,160,000=720,000 units
Break-even point in dollars X=.3X+$2,160,0003X=$2,160,000X=$7,200,000\begin{array}{c}\text { Break-even point in dollars } \\X=.3 X+\$ 2,160,000 \\3 X=\$ 2,160,000 \\X=\$ 7,200,000\end{array} Break-even point in dollars X=.3X+$2,160,0003X=$2,160,000X=$7,200,000
(b)
Margin of safety in dollars $7,500,000−$7,200,000=$300,000 Margin of safety ratio $300,000÷$7,500,000=4%\begin{array}{l}\text { Margin of safety in dollars }\\{\$ 7,500,000-\$ 7,200,000}=\$ 300,000 \\\\\text { Margin of safety ratio }\\{\$ 300,000 \div \$ 7,500,000}=4 \%\end{array} Margin of safety in dollars $7,500,000−$7,200,000=$300,000 Margin of safety ratio $300,000÷$7,500,000=4%
(c)
Net Income Sales $7,500,000 Variable Costs (5,250,000) Fixed Costs (2,160,000) Net Income $90,000\begin{array}{lc}\text { Net Income }\\\text { Sales } & \$ 7,500,000 \\\text { Variable Costs } & (5,250,000) \\\text { Fixed Costs } & (2,160,000) \\\quad \text { Net Income } & \$ 90,000\end{array} Net Income Sales Variable Costs Fixed Costs Net Income $7,500,000(5,250,000)(2,160,000)$90,000
AF
Answered
Managerial accounting internal reports are prepared more frequently than are classified financial statements.
On May 17, 2024
True
AF
Answered
The general common law rule on contract modifications holds that an agreement to modify an existing contract requires a(n) :
A) necessary increase in the value of the exchange.
B) inclusion of a new party to the contract.
C) new and independent consideration.
D) economic exchange of substantial value.
A) necessary increase in the value of the exchange.
B) inclusion of a new party to the contract.
C) new and independent consideration.
D) economic exchange of substantial value.
On May 16, 2024
C