Answer:
Break-even point in units= 348
Explanation:
Giving the following information:
The fixed cost for the production will be $24,000. The variable cost will be $31 per pair of shoes. The shoes will sell for $100 for each pair.
<u>To calculate the break-even point in units, we need to use the following formula:</u>
<u></u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 24,000 / (100 - 31)
Break-even point in units= 347.82 = 348
Answer: See explanation
Explanation:
a. Record the warranty accrual at the time of sale in 2020.
Debit Warranty expense = $250,000 × 1% = $2,500
Credit Warranty Liability $2,500
(To record the warranty accrual)
b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.
Debit Warranty Liability $800
Credit Cash and Payables $800
Answer:
A) A relatively large budget deficit as a percentage of GDP beyond the European Union's deficit and debt rules.
Explanation:
A budget deficit is when the governments have more expenditures in a budgeted year than they have the revenues in form of taxes and other incomes. A deficit is excessive if it is large in comparison to the GDP.
In the European Union the budget deficit is considered excessive if it exceeds 3% of the running years GDP.
A public debt percentage to GDP of 60% or above is considered excessive as most of the GDP then is used for debt servicing and thus impacts negatively on the financial health of the country.
Hope that helps.
