# The owner of a greenhouse and nursery is considering whether to spend \$6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for \$6 each. Per-unit variable cost would be \$3. How many rosebushes would she have to produce and sell in order to break even

Break-even point in units= 2,000

Explanation:

Giving the following information:

Fixed costs= \$6,000

Selling price= \$6 each

Unitary variable cost= \$3

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 6,000 / 3

Break-even point in units= 2,000

## Related Questions

Equipment with a book value of \$65,300 and an original cost of \$133,000 was sold at a loss of \$14,000. Paid \$89,000 cash for a new truck. Sold land costing \$154,000 for \$198,000 cash, yielding a gain of \$44,000. Long-term investments in stock were sold for \$60,800 cash, yielding a gain of \$4,150. Use the above information to determine this company’s cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)

The company’s cash flows from investing activities is \$221,100

Explanation:

Cash flow from investing activities:

It records that transactions which is related to the purchase and sale of long term assets. The purchase of fixed assets has outflow of cash so, it is deducted whereas the sale of fixed assets has inflow of cash so, it is added.

The cash flow from investing activities is shown below:

Add : Sale of equipment (Book value - loss) = (\$65,300 - \$14,000) = \$51,300

Less : Purchase of new truck = - \$89,000

Add: Sale of land = \$198,000

Add: Sale of long term investment = \$60,800

So, the cash flow from operating activities :

= \$51,300 - \$89,000 + \$198,000 + \$60,800

= \$221,100

The other cost is not related to the investing activities. Therefore, it is not considered in the computation part.

Hence, the company’s cash flows from investing activities is \$221,100

The first step in assembling a project team is to:A) talk to potential team members.
B) identify the required skills.
C) negotiate with the functional supervisor.
D) notify top management.

B) identify the required skills.

Explanation:

After the scope of a project has been clearly defined with the goal well understood, in assembling a project team there is a need to first identify the required skills for the project.

This is key and has to be done before talking to potential team members, negotiating with the functional supervisor and notifying top management.

An agent informs owners in an area that a decline in property values over the past five years is due to an influx of minority families. He suggests that the trend will continue, and advises them to sell before it is too late. This agent is probably guilty of

This agent is probably guilty of

Blockbusting

Explanation:

Blockbusting is an illegal act. It is a manipulative method used by real estate agents to get homeowners to sell or rent their property at a cheaper rate by lying to them that the socioeconomic demography of the neighborhood is changing, so they have to sell before it is too late. This can be seen in how the agent informs the owners that their property experienced a decline in the past 5 years because of the minorities who moved in. The Fair Housing Act of 1968 makes blockbusting illegal.

On December 31, 2019, Spearmint, Inc., issued \$450,000 of 9 percent, 3-year bonds for cash of \$461,795. Prepare the necessary journal entry for Spearmint, Inc.

Dr Cash for \$461,795,

Cr Premium on Bonds Payable for \$11,795

Cr Bonds Payable for \$450,000

Explanation:

Journal entries

Dr Cash for \$461,795,

Cr Premium on Bonds Payable for \$11,795

Cr Bonds Payable for \$450,000

(Issue price of \$461,795 - par value of \$450,000) =\$11,795

Dr Cash         \$461,795

Cr Bonds payable                    \$450,000

Cr Premium on bonds payable \$11,795

Explanation:

The journal entries to record the issue of bonds for the proceeds of \$461.795 is to debit the cash amount as the cash has increased and credit would \$450,000 in bonds payable account and the balance of \$11,795(\$461,795-\$450,000) is the premium on the issue and it is credited to premium on bonds account.

The bonds payable is credited because the \$450,000 represents obligation owed to bondholders

jongeward corporation is the process of preparing its annual budget. the following beginning and ending inventory levels are planned for the year. the number of units the company would have to manufacture during the year would be

\$750,000 units

Explanation:

Calculation to determine the number of units the company would have to manufacture during the year

PRODUCTION BUDGET

Budgeted unit sales 700,000

Add desired ending finished goods inventory 73,000

Total \$773,000)

(700,00+73,000

Less beginning finished goods inventory \$23,000

Units to manufacture 750,000

Therefore number of units the company would have to manufacture during the year would be: \$750,000

Which of the following statement is incorrect concerning standard costing​ and/or variance​ calculations? A. Price​ (rate) standards represent the expected cost per unit of input. B. Standards are used at the beginning of the period during to budget and at the end of the period to evaluate performance. C. Variances falling outside of an acceptable range of outcomes do not require investigation. D. A price​ (rate) variance calculates the difference between what a company paid and what it expected to pay for its production input. E. A favorable quantity​ (efficiency) variance indicates that a company used less input than allowed for the actual level of output.