Beachside co. sells two products, skis and snorkels. last year beachside sold 12,600 units of skis and 23,400 units of snorkels.
related data are: product unit selling price unit variable cost unit contribution margin skis $120 $80 $40 snorkels 80 60 20 what was beachside co.'s sales mix last year? a. 30% skis, 70% snorkels
b. 60% skis, 40% snorkels
c. 35% skis, 65% snorkels
d. 12% skis, 28% snorkels
In the given question, the building was purchased and it repairs also. Plus, annual taxes are applicable to the property. The current market value and the book value of the building is also given in the question
For including the amount in the initial cash flow for the building project we consider the current market value of the building i.e $730,000. No other cost should be recognized
The amount of payoff that holders of bond B should expect is the total amount realizable when the assets are disposed of minus the value of secured bond A of $2 million.
The amount realizable is the worth of the office building which is $1 million plus the worth of other assets at $2 million.
The rationale here is that bond A is secured on the office building which is worth $1 million,hence from the cash realizable thereafter both bonds have equal standing of $1 million each
