I sell pants that have $5 in variable costs (direct materials and labor). I have $100,000 in fixed costs, and I expect to sell 1

Answer: 277.61 - option B

Explanation: A loan of $150,000 was taken.

It is a 20-year mortgage with an interest rate of 7.35 percent. Begin by dividing 0.0735 by 12 to obtain a monthly interest rate of 0.0061. Then, add 1 to 0.0061, resulting in 1.0061. The loan comprises 240 monthly payments since 20 years multiplied by 12 months gives that total. Raise 1.0061 to the power of -240 to yield 0.2323. Subsequently, subtract that from 1, giving you 0.7676. Finally, divide 0.0061 by 0.7676 to arrive at 0.007947, which when multiplied by $150,000 results in a monthly payment of $1192.

For the second payment, use 11 months instead of 12.

This results in: 277.61

Answer:

Note: The question is attached as a picture

(a)  An example is shown below

(b)   Dr 15. Operating Expenses (wages, supplies)  

         Cr 1. Cash

(c)  Dr 7. Account Payable

       Cr 1. Cash

(d)  Dr 3. Supplies

       Cr 1. Cash

(e)  Dr 2. Accounts Receivable

        Cr 14. Service Revenue

(f)  Dr 1. Cash

       Cr 2. Accounts Receivable

(g) Dr 1. Cash

        Cr 11. Common Stock

(h)   Dr 15. Operating Expenses (wages, supplies)

         Cr 1. Cash

(i)   Dr 15. Operating Expenses (wages, supplies)

       Cr 9. Wages Payable

(j)    Dr 6. Patent

        Cr 1. Cash

(k)   Dr 1. Cash  

         Cr. 14. Service Revenue

(l)   Dr 15. Operating Expenses (wages, supplies)

        Cr 3. Supplies

(m) Dr 16. Income Tax Expense

         Cr 1. Cash

         Cr. 10. Income Tax Payable

(n)    Dr 8. Note Payable

      Dr 17. Interest Expense

         Cr 1. Cash

(o)  Dr 4. Prepaid Expense

          Cr 1. Cash