BE3–8 Mountaineer Excavation operates in a low-lying area that is subject to heavy rains and flooding.

Because of this, Mountaineer purchases one year of flood insurance in advance on March 1, paying

$36,000 ($3,000/month). (1) Record the purchase of insurance in advance on March 1. (2) Record the

adjusting entry on December 31. (3) Calculate the year-end adjusted balances of Prepaid Insurance and

Insurance Expense (assuming the balance of Prepaid Insurance at the beginning of the year is $0).

Record the adjusting entry for depreciation (LO3–3)

Which of the following statements about the relationship between economic costs and accounting costs is true? multiple choice accounting costs are equal to or greater than economic costs. accounting costs must always equal economic costs. accounting costs are always greater than economic costs. accounting costs are always less than or equal to economic costs.

In 1975, mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of:

Lucido products markets two computer games: claimjumper and makeover. a contribution format income statement for a recent month for the two games appears below: claimjumper makeover total sales $ 30,000 $ 70,000 $ 100,000 variable expenses 20,000 50,000 70,000 contribution margin $ 10,000 $ 20,000 30,000 fixed expenses 24,000 net operating income $ 6,000 required: 1. compute the overall contribution margin (cm) ratio for the company.. 2. compute the overall break-even point for the company in dollar sales. 3. complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products. (do not round intermediate calculations.)