CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
6th Edition
ISBN: 9781264445356
Author: Noreen
Publisher: MCG
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Chapter 2, Problem 2.24P

1.

To determine

Introduction:

Break-even point:

Break-even point is the point at which there is no profit or no loss because at this point the total cost is equal to the total sales revenue generated by the company.The contribution earned by the company is sufficient to cover all its costs at the break-even point and if the contribution is lesser then it is loss and if it is higher, then it is profit.

To calculate the break-even point in unit sales and dollar sales to attain a target profit of $1200.

2.

To determine

Introduction:

Break-even point:

Break-even point is the point at which there is no profit or no loss because at this point the total cost is equal to the total sales revenue generated by the company. The contribution earned by the company is sufficient to cover all its costs at the break-even point and if the contribution is lesser then it is loss and if it is higher, then it is profit.

To calculate the break-even point in unit sales and dollar sales upon assuming that Hooper has placed an initial order for 75 sweatshirts.

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Presented below is information related to equipment owned by Concord Company at December 31, 2020. Cost   $9,450,000 Accumulated depreciation to date   1,050,000 Expected future net cash flows   7,350,000 Fair value   5,040,000 Assume concord intends to dispose of the equipment in the coming year. it is expected that the cost of the disposal will be $21,000. As of December 31, 2020, the equipment has a remaining useful life of 4 years. (b) prepare the journal entry (if any) to record depreciation expense for 2026. (c)  the asset was not sold by december 31, 2026. The fair value of the equipment on that date is $5,565,000. prepare the journal entry (if any) necesarry to record this increase in fair value. it is expected that the cost of disposal is still $21,000.
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