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2 years ago

NEED ASNWER ASAP

1 answer:

4 0

One thing that is not a correct description of margin of safety is that c. It may be expressed in terms of units or peso.

<h3 /><h3>What is the margin of safety?</h3>

This is found by deducting break-even sales from budgeted sales which means that it shows the number of sales that a company can forego and still earn profits.

This means that if this figure is positive, the company would earn profit as they would have beaten their breakeven point. It can be shown in units or currency.

Find out more on the margin of safety at brainly.com/question/9797559.

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You got asked to analyze a 5 year project for your firm. The project produces an annual revenue of $28,500, but requires an annu

hram777 [196]

Answer:

15,300

72.70%

Explanation:

After tax cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($20,000 - $5,000) / 5 = $3,000

($28,500 - $5,000 - $3000) x (1 - 0.4) + $3000 = $15,300

Terminal year cash flow = after tax cash flow + salvage value

$15,300 + $5,000 = $20,300

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Cash flow in year 0 = $20,000.

Cash flow in year 1 - 4= $15,300

Cash flow in year 5 = $20,300

IRR = 72.70%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

8 0

3 years ago

Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the

dimaraw [331]

Answer:

D : All options are correct

Explanation:

- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.

- @ Q = 500 units, Selling Price is set at SP = $35

- @ Q = 500 units, Buying Price is set at BP = $40

- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.

- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.

- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.

6 0

3 years ago

An investment adviser representative who prepares financial plans for customers is also a registered life insurance agent in tha

Alex777 [14]

Answer:

D. Recommendation to buy life insurance does not make the investment advice any less objective.

Explanation:

investment adviser representative are also regarded as financial planner are advisers that gives advice in term of financial service to firms or individual or his/ her customer

In the situation described in the question whereby, the agent recommends that a customer sell a mutual fund holding and use the proceeds to buy life insurance, then these information are needed to be disclosed to the customer

✓. Sale of the mutual fund mayor is alt in a taxable event to the customer

✓Recommendation to purchase life insurance is in no way connected to the services offered by the advisory firm

✓Agent will earn a commission on the life insurance purchased by the customer

6 0

4 years ago

Production used 2.5 labor hours per finished unit, and the company actually paid $21 per hour, totaling $52.50 per unit of finis

jeka94

Answer:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual hours

Explanation:

Giving the following information:

The production used 2.5 labor hours per finished unit, and the company paid $21 per hour, totaling $52.50 per unit of finished product.

<u>We weren't provided with enough information to solve the problem. We need estimated production hours and rates. But, I can leave the formula to solve it.</u>

To calculate direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Hours

3 0

3 years ago

Bulldog Corporation reported taxable income of $925,000 this year, before any deduction for any payment to its sole shareholder

Oliga [24]

Answer:

Explanation:

The computation is shown below:

Corporate tax = (Taxable income - bonus expenses) × corporate tax rate

= (925,000 - $153,000) × 21%

= $162,120

The corporate tax rate is 21% and we take the same for computation

Shareholder tax = Bonus expenses × marginal tax rate

= $153,000 × 35%

= $53,550

So, the total income tax would be equal to

= $162,120 + $53,550

= $215,670

5 0

3 years ago