Brewster Café Has Estimated That Fixed Costs Per Month Are

question 40

Multiple Choice

Brewster Café has estimated that fixed costs per month are $114,840 and variable cost per dollar of sales is 42%.For the month of July, the cafe anticipates sales of $300,000.What is the expected level of profit?

• A)$126,000
• B)$59,160
• C)$174,000
• D)$11,160

Evaluate the reporting requirements for changes in accounting principle as they relate to the equity method.

Understand the calculation and reporting of gains or losses on the sale of investments.

Grasp the equity method adjustments for intra-entity inventory sales and unrecognized profits.

Comprehend the transition and accounting implications from fair-value method to equity method of accounting.

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Definitions:

Interactive Exchanges

Communications or transactions between two or more parties that involve reciprocal actions and reactions, often in real time.

Sites Of Idleness

Sites Of Idleness refer to places or contexts that are associated with a lack of activity or productivity, often criticized in societal and economic discussions.

Implicit Knowledge

Implicit knowledge is the type of knowledge that is difficult to articulate or transfer to another person by writing it down or verbalizing it, often learned through experience.

Decoding

The process by which a recipient of a message interprets or makes sense of the message, often influenced by individual factors and sociocultural contexts.