Question 2 (multiple choice)

The theory of mercantilism states that a country’s power depends mainly on its wealth. During the Age of Exploration, this meant

aleksklad [387]

Answer:

A positive balance of trade

Explanation:

The theory of mercantilism states that a country’s power depends mainly on its wealth. During the Age of Exploration, this meant that the prosperity of a nation should depend on a large supply of bullion (silver and gold) and a positive balance of trade. A positive balance of trade implies that exports should exceed imports. There were tariffs on imports. This discouraged importation.

Mercantilism was commonly practised in Europe within the 16th to 18th century.

I hope my answer helps you

4 0

3 years ago

The main expense of a merchandiser is usually ________.

olya-2409 [2.1K]

The answer that will fill in the blank is cost of goods sold because the merchandiser’s main expense is the cost that they receive in goods that they have sold to the consumers. The merchandiser is the one responsible of ensuring products are placed and are properly organized in the store.

7 0

3 years ago

Imagine that you are a parent, and your child is going to college in 4 years. Tuition fees amount to $16,000 a year for each of

LiRa [457]

Answer:

lump sum money= $52653

Explanation:

Giving the following information:

Your child is going to college in 4 years.

Tuition fees amount to $16,000 a year for each of the 4 years.

You plan on depositing a lump sum of money today in a bank account paying 5% interest a year.

The first tuition fee payment you make will be 4 years from now.

FV= 16000*4= $64000

n= 4 years

i= 0.05

We need to find the annual payments:

PV= FV/(1+i)^n

PV= 64000/1.05^4= $52653

7 0

3 years ago

The break-even point is a.the maximum possible operating loss. b.where the total sales line intersects the total costs line on a

Alisiya [41]

Answer:

The answer is B.

Explanation:

To a layman, break-even point is the point where an entity neither make profit nor loss. It is the point where total revenue equals total cost(where the total sales line intersects the total costs line on a cost-volume-profit chart).

Points greater or above this intersection or point mean the firm is making profit and points lesser or below this intersection or point mean the firm is making loss.

4 0

3 years ago

Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all produc

Pavlova-9 [17]

Answer:

Part a 

Belmain Co.

Estimated Income statement for the year ended 2017.

Sales ($240 x 12,000) $2,880,000

Less Variable Costs :

Direct Materials ($50.00 x 12,000) ($600,000)

Direct Labor ($30.00 x 12,000) ($360,000)

Factory Overheads ($6.00 x 12,000) ($72,000)

Sales Salaries and Commissions ( $4.00 x 12,000) ($48,000)

Miscellaneous selling expenses ( $1.00 x 12,000) ($12,000)

Supplies ($4.00 x 12,000) ($48,000)

Miscellaneous administrative expenses ($1.00 x 12,000) ($12,000)

Contribution $1,728,000

Less Fixed Expenses :

Factory overhead ($350,000)

Sales salaries and commissions ($340,000)

Advertising ($116,000)

Travel ($4,000)

Miscellaneous selling expense ($2,300)

Office and officers’ salaries ($325,000)

Supplies ($6,000)

Miscellaneous administrative expense ($8,700)

Net Income ( Loss) $576,000

Part b

0.6 or 60 %

Part c

Break-even sales (units) = 8,000

Break-even sales (dollars) = $1,920,000

Part d

See attachment

Part e

Margin of safety in dollars = $960,000

Margin of safety in percentage = 33.3 %

Part f

Operating Leverage = 3.00

Explanation:

Income Statement :

Sales - Expenses = Income

Note : I have separated Variable and Fixed Expenses

Contribution Margin ratio :

Contribution Margin ratio = Contribution ÷ Sales

= $1,728,000 ÷ $2,880,000

= 0.6 or 60 %

Break-even sales ( units and dollars) :

Break-even sales (units) = Fixed Costs ÷ Contribution per unit

= $1,152,000 ÷ $144.00

= 8,000

Break-even sales (dollars) = Fixed Costs ÷ Contribution margin ratio

= $1,152,000 ÷ 0.60

= $1,920,000

Margin of safety in dollars and as a percentage of sales :

Margin of safety in dollars = Expected Sales (dollars) - Break-even sales (dollars)

= $2,880,000 - $1,920,000

= $960,000

Margin of safety in % = (Expected Sales - Break-even sales ) ÷ Expected Sales

= $960,000 ÷ $2,880,000

= 33.3 %

Operating leverage

Operating Leverage = Contribution ÷ Earnings Before Interest and Tax

= $1,728,000 ÷ $576,000

= 3.00

3 0

3 years ago