Answer:
5,182 Units
Explanation:
The computation of additional units is given below:-
Operating income = Contribution Margin Per unit × Units - Fixed cost
= ($4.50 - $1.75) × 29,000 - 8,500
= $71,250
Operating income is increased by 20%
Operating income = $71,250 × 1.20
= $85,500
So, per units
$85,500 = ($4.50 - $1.75) × Units - 8,500
= $94,000 ÷ 2.75
= 34,181.82
Additional Units
= 34,181.82 - 29,000
= 5,182 Units
Answer:
A. 27,000
B. 77,000
Explanation:
What is Reggie's accounting profit?
REVENUE - EXPENSES AND DEPRECIATION
90000-18000-6000-3000=63000
What is Reggie's economic profit?
REVENUE - EXPENSES AND DEPRECIATION - IMPLICIT COSTS
90000-18000-60000-3000-76000 = -13000
1) accounting profit = TR - explicit cost
= 90,000 - 63,000
= 27,000,
2) economic profit = TR - economic cost
= 90,000-(13,000)
= 77,000
If this is the whole problem:
<span>A trucking company is hired to deliver 125 lamps for $12 each. The company agrees to pay $45 for each lamp that is broken during transport. If the trucking company needs to receive a minimum payment of $1365 for the shipment to cover their expenses, find the maximum number of lamps they can afford to break during the trip.
My answer is 3 lamps.
125 lamps * 12 each = 1,500 total revenue
</span>
Minimum revenue: 1,365
1,500 - 1,365 = 135 excess from minimum revenue.
135 ÷ 45 charge of broken lamp = 3 lamps.
The company can afford to break a maximum of 3 lamps w/o falling below its minimum payment.
Answer:
<u>II and III</u>
Explanation:
According to the IRS tax guidelines this two scenario matches them correctly;
The statement that James is Patti's brother, <em>would imply</em> that he (James) would not recognize any income from the sale to be deducted as tax.
Second, assuming Patti is an art dealer and she sold the painting to James because she needed cash quickly, James would not recognize any imputed income from the sale.
Answer:
Papa Sean's Restaurant
Transactions that affect the Accounting Equation:
a. Increase one asset and decrease another asset.
Cash of $40,000 is received from customers on account.
b. Decrease an asset and decrease equity.
A wage expense of $56,000 is paid for the period
c. Decrease an asset and decrease a liability.
Suppliers are paid $67,000 on account.
d. Increase an asset and increase equity.
Customers are billed $90,000 for services rendered in the month.
e. Increase an asset and increase a liability.
The company purchases equipment worth $35,000 on account.
Explanation:
The accounting equation shows that for each financial transaction of a business affects at least two accounts and may involve the two sides of the accounting equation or affect two accounts on one side of the equation. This implies that the equation is always in balance. The accounting equation also explains the duality of business transactions.
