Reference no: EM132942337

Problem 1: Performing services for a customer on account would result in:

Option 1: An increase in Cash and a decrease in Accounts Receivable

Option 2: An increase in Accounts Receivable and an increase in Unearned Revenue

Option 3: An increase in Accounts Receivable and an increase in Service Revenue

Option 4: A decrease in Accounts Payable and a decrease in Service Revenue

Problem 2: Stylish Clothiers buys shirts for $25 and sells them for $40.

The company has fixed costs of $12,000 per month.

Calculate the monthly break-even point in units.

Option 1: 300

Option 2: 480

Option 3: 250

Option 4: 800