Use the Following to Answer Questions

question 31

Multiple Choice

Use the following to answer questions
Ogallah Inc. sells its product for $9.25 per unit. The variable costs per units are $2.50 and total fixed costs are $452,250. If Ogallah buys new software for the production process at a cost of $55,250, variable costs will be reduced by 20%.
-The breakeven point prior to the purchase of the computer is:

• A)180,900
• B)70,000
• C)67,000
• D)48,892

Understand the tax implications and benefits related to leasing.

Comprehend the roles and responsibilities in various leasing arrangements.

Evaluate the decision-making process involved in leasing versus buying.

Recognize the regulatory framework and intentions behind leasing arrangements.

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Definitions:

Express Authority

The power granted to an agent or entity explicitly and clearly by the principal or by law.

Actual Authority

The power granted to an agent by a principal to legally bind the principal in transactions with third parties.

Principals

The parties who are directly involved and have the major interests in a legal transaction or agreement.

Contractual Relationship

An agreement between entities, enforced by law, that outlines obligations and benefits for each party.