Big John's Manufacturing currently produces its lead product on a machine that has a variable cost of $0.32 per unit, and fixed costs of $75,000
Big John is considering purchasing a new machine that would drop the variable cost to $.28 per unit, but has fixed costs of $150,000. What is the cross-over point between the two machines?
1,875,000 units
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The direct write-off method for uncollectible accounts violates the matching principle
Indicate whether the statement is true or false
A violation of the profession's ethical standards would most likely have occurred when a CPA in public practice
a. Used a records-retention agency to store the CPA's working papers and client records b. Served as an expert witness in a damage suit and received compensation based on the amount awarded to the plaintiff c. Referred life insurance assignments to the CPA's spouse, who is a life insurance agent d. Serves on a municipal board of income tax appeals, discloses that status to concerned parties, participates as a board member in a tax appeal involving a client, but does not receive the client's consent for such action