Answer:
ChowMein Company
a. Monthly break-even point in sales dollars = Fixed Costs/Contribution margin
= $2,000/50%
= $4,000
b. Monthly break-even point in units = Fixed Costs/Contribution per unit
= $2,000/$300
= 6.67 or simply 7 units
c. Monthly income for April:
Sales ($600 * 15) = $9,000
Variable cost ($300 * 15) = $4,500
Contribution = $4,500
Fixed Costs = $2,000
Income = $2,500
d. Monthly income for May:
Sales ($600 * 20) = $12,000
Variable cost ($300 * 20) = $6,000
Contribution = $6,000
Fixed Costs = $2,000
Income = $4,000
e. Margin of Safety for April:
Sales in April minus Break-even Sales
= $9,000 - $4,000
= $5,000
Explanation:
Data and Calculations:
Unit selling price = $600
Unit variable costs = $300 ($250 + 50)
Unit Contribution = $300
Contribution margin = 50% ($300/$600 * 100)
Fixed Costs = $2,000
April sales = 15
May sales = 20
Answer:
The journal entry will involve the credit to Unearned franchise fee revenue which amounts to $36,000
Explanation:
The journal entry which is to be recorded for signing the substantial and the collection of note receivable is as:
March 15, 2020
Cash A/c......................................Dr $36,000
Unearned franchise fee revenue A/c......Cr $36,000
As cash is received and that amounts to $6,000, the remaining balance amount of $30,000 being debited to Note receivable will be recognized during the year as and when received. And the Unearned franchise fee revenue for $36,000 is credited because signing date and the performance is yet pending.
Explanation:
Income Elasticity of Demand(IED)= Percentage change in quantity demanded/ Percentage change in income
-Percentage change in Q:
%Change in quantity demanded= (q2-q1/q1) = (10-8)/8= 0.25
-Percentage change in Income:
%Change in income= (i2-i1/i1) = (4,500-4,000)/4,000= 0.125
IED= 0.25/0.125= 2
This indicates that the Shaffers are very sensitive to changes in income when it comes to eating out. Which means that changes in income will change significantly the number of times they eat out.
2. Restaurant meals are normal goods, in this case, because when income rises, they ate more in restaurants, then the units consumed for this good increase too.
<span>We were told they produced 700 units. So far so good, but I would like to ask 40% of how many total initialnunits? Let the unit be X so we have 40% * X = 700 units and similarly 40% * X = 400units. So we have that X = 700/.4 and X = 400/.4 this gives 1750 and 1000 units respectively. Total units transferred to the finished goods is 1750 + 1000 = 2750 units. With 4800-2750 =2050 still needing to be be produced.</span>
<h2>Jake should use multi-tasking skill.</h2>
Explanation:
An employee with multi-tasking skill grows well in an organization because he can handle multiple responsibilities and that is what the need of the hour.
Jake should also prioritize the work to do multi-tasking. According to the given situation.
1. Clarify the client first. Clients are king. They bring business.
2. Make the changes in the previous report. Because this is rework and better to complete it soon.
Below are fresh works.
3. Review the report written by the co-worker
4. Write your own report.
