EBK ACCOUNTING PRINCIPLES
EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Chapter 3, Problem 28Q
To determine

Economic entity assumption: This assumption is one of the important assumptions of the accounting. It states that the owner of the business and business organization both are separate entities.

To determine: Meaning and example of economic entity assumption.

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Estefan, Inc. produces a product that has a variable cost of $8.00 per unit. The company's fixed costs are $75,000. The product is sold for $12.50 per unit and the company desires to earn a target profit of $45,000. What is the amount of sales that will be necessary to earn the desired profit?
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