Answer:
See below
Explanation:
Given the above information, margin of safety in dollars is computed as;
= (Total sales - Break even sales) × Sales price
= (4,525 - 2,000) × $90
= $227,250
Therefore, the margin of safety in dollars is $227,250
Answer:
$81, $75, and $69
a. Market value of existing shares = 215000 * $81 = $17415000
Value of New shares issued = 48000 * $81 = <u>$3888000</u>
<u>$21,303,000</u>
Price after issue of new shares = 21,303,000 / (215000 + 48000)
= 21,303,000 / 263,000
= $81
Conclusion: No changes ($0 per share
b. Market value of existing shares = 215000 * $81 = $17415000
Value of New shares issued = 48000 * $75 = <u>$3600000</u>
<u>$21015000</u>
Price after issue of new shares = 21015000 / (215000 + 48000)
= 21,015,000 / 263,000
= $79.90
Conclusion: There is a decrease in amount (81 - 79.90) = $1.10 per share
c. Market value of existing shares = 215000 * $81 = $17415000
Value of New shares issued = 48000 * $69 = <u>$3312000</u>
<u>$20,727,000</u>
Price after issue of new shares = 20,727,000 / (215000 + 48000)
= 20,727,000 / 263,000
= $78.81
Conclusion: There is a decrease in amount (81 - 78.81) = $2.19 Per share
Answer:
- $25.50
- 90,000 units
- 140,000 units
Explanation:
1. Current contribution margin ratio
= (Selling price - Variable cost)/ Selling price
= (25 - 19.8) / 25
= 0.208
New Direct labor = 5.0 * ( 1 + 8%)
= $5.40
New variable cost = 19.8 + 0.4 = $20.20
To maintain 0.208
0.208 = (Selling price - 20.20) / Selling price
0.208 * Price = Price - 20.20
0.208Price - Price = -20.20
-0.792Price = -20.20
Price = -20.20/-0.792
Price = $25.50
2. Breakeven = Fixed Cost / Contribution Margin
Contribution Margin = Selling price - Variable cost
= 25 - 19.8
= $5.20
= 468,000/5.2
= 90,000 units
3. To earn $260,000;
= (Fixed Cost + 260,000) / Contribution margin
= (468,000 + 260,000) /5.2
= 140,000 units
<span>Citizens united permitted individuals and organizations to form committees, called POLITICAL ACTION COMMITTEES </span><span> which can raise unlimited amounts of money to run political advertising
Political action committees usually work together with several interest groups in order to place a mutually beneficial candidate on the office. Since it absorb money from private sector to the government, the amount of money collected by PAC will not affect governmental budget</span>
The basis for this argument is that consumption tax takes a larger percentage of income from low income earners than from high income earners. This is because consumption tax is uniformly applied to all people irrespective of their situation.<span />
