From your reading of the chapter's opening case, ACH Food Companies implemented new information systems in order to achieve whic
1 answer:
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Answer:
Break Even Point in Dollars = $6,000
Explanation:
Break Even Point in Dollars =
Selling price per unit.
Total Fixed Cost = Fixed Production cost + Fixed Selling Expenses
Fixed Production Cost = $3,000
Fixed Selling Expense = $1,500
Total Fixed cost = $3,000 +$1,500 = $4,500
Contribution per unit = Selling price - Variable Cost per unit
Selling Price Per Unit = $2.00
Variable Cost Per Unit = Variable Production cost + Sales commission
Variable Production cost = $0.30
Sales Commission Cost = $0.20
Variable Cost per unit = $0.30 + $0.20 = $0.50
Contribution per unit = $2.00 - $0.50 = $1.50
Break-even point =
Break Even Point in Dollars = $6,000
Answer:
The right solution is "600000".
Explanation:
The given values are:
Cost of office furniture,
= $100,000
Cost of the computer system,
= $500,000
- The changed MACRS enables a company to reduce the mortgage balance of such deteriorating properties over time.
- Throughout the very first years, MACRS permits quicker depreciation although subsequently slows down depriving. This seems to be fantastic for corporations from a tax point of view.
Now,
The cost recovery deduction will be:
=
On substituting the values, we get
=
=