FIN + MANAG ACCT 180 DAY CUST CONN ACC
FIN + MANAG ACCT 180 DAY CUST CONN ACC
9th Edition
ISBN: 9781266114090
Author: Wild
Publisher: INTER MCG
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Chapter 6, Problem 13DQ
To determine

Concept Introduction:

Idle cash: Idle cash is also referred to as surplus cash that is lying in the account for no reason. In other words, idle cash can be defined as the amount that remains in the company’s current or saving account on which no or little interest is being paid.

The reason for investing idle cash in cash equivalents.

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Company Name Price Variable manufacturing costs Fixed manufacturing costs Variable selling costs Fixed administrative costs Avocado Co                 50                                                    15                                        3,000                                      5                                          1,000 Banana Co                 60                                                    18                                        2,000                                      9                                          1,000 Cherry Co                 35                                                       8                                        4,000                                      2                                          2,000 Answer these questions 1. Which company has the lowest variable cost? 2. Which company has the lowest fixed cost? 3. Which company has the lowest breakeven point in units? 4. What is the breakeven point in units for the…
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