Closing Entries Included Debits to Revenues for a Total of $5,300

question 8

Multiple Choice

Closing entries included debits to revenues for a total of $5,300, credits to expenses for a total of $3,400, and a credit to dividends for $700. The net income for the month was:

• A)$700.
• B)$1,900.
• C)$3,400.
• D)$4,600.

Analyze the impact of sales mix changes on the break-even point.

Calculate the margin of safety in both dollars and percentage terms.

Compute target profit analysis in unit and dollar sales.

Understand the implications of a change in total sales or sales mix on company profitability.

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Definitions:

New York Federal Reserve Bank

A regional bank part of the Federal Reserve System, playing a key role in monitoring and executing monetary policy in the United States.

Discount Rate

The rate of interest the Fed charges to loan money to any banking institution to meet reserve requirements.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services at all levels within a society.