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Question - Ayayai Corporation issued a 5-year, $68,000, zero-interest-bearing note to Garcia Company on January 1, 2020, and received cash of $68,000. In addition, Ayayai agreed to sell merchandise to Garcia at an amount less than regular selling price over the 5-year period. The market rate of interest for similar notes is 12%.
Prepare Ayayai Corporation's January 1 journal entry.
A Company sells two products, J and K. The sales mix is 4 units of J and 3 units of K. The contribution margins per unit are $ 40 for J and $ 20 for K. Fixed costs are $ 6,16,000 per month. Compute the break-even point.
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