Aflower shop makes a large sale for $1,000 on november 30. the customer is sent a statement on december 5 and a check is received on december 10. the flower shop follows gaap and applies the revenue recognition principle. when is the $1,000 considered to be earned?
a. december 5
b. december 10
c. november 30
d. december 1

Agood for which demand increases as income rises is and a good for which demand increases as income falls is

Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i.e., to have ebit = zero?

You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase