Answer:
Margin of safety = 2,000 units
Explanation:
Margin of Safety =Total units sold-Break-even point
where Total units sold = 
=14,000 units
Break even point = 
The contribution per unit can be deduced from the contribution margin ratio as follows:
Contribution margin ratio=
=40%
this implies that Contribution Margin=40%*Sales
Given a selling price of $16/unit, contribution per unit = 0.4*$16=$6.40
therefore :
Break even point = 
=12,000 Units
Margin of Safety =Total units sold-Breakeven point= 14,000 units -12,000 units = 2,000 units
Answer:
Correct answer is False for economic decision making, when the inputs and outputs are fixed, the criterion to use is minimize the input
Since, both input and output are fixed, the input can’t be decreased. Each of them has to be fixed in directive to vary the association among them. (It can be fixed contribution, or fixed production or neither one of them is fixed)
Answer:
The following applies:
1. expenses when incurred to generate revenue.
2. expenses even when cash has not yet been paid
3. revenue even when cash has not been collected
4. revenue when earned
Explanation:
Accrual basis is an accounting concept that recognizes revenue when earned when if the collection of cash will be done later.
It also recognizes expenses when incurred even though the cash has not been spent.
Accrual basis matches a transaction with when it happened.
It is different from cash basis which recognizes revenues only when the cash is received and expenses only when the cash has been spent.
Answer:
The offense committed by Ben is;
D. Embezzlement
Explanation:
While conducting business, there are numerous activities that are considered an offense. An offense is a crime that is punishable in a court of law. Some examples of offenses that can be committed in business are;
1. Forgery
Forgery is the act of imitating a writing in which the legal rights and obligations of the person is affected in one way or another. Forgery is majorly done for false misrepresentation. Some of the items that can be forged are; documents, signatures, banknote or even a work of art. Forgery is a criminal offense.
2. False entries
A false entry is a deliberate mistake in writing or oral meant to trick or confuse an entity mostly used to get money dishonestly. A false entry is also a criminal offense.
3. False token
A false token is a dishonest mark or symbol that is used to commit crime. The use of false tokens is also a crime.
4. Embezzlement
Embezzlement is the stealing of funds from a government, company or a business by an individual who the funds were entrusted. An example is Ben who misappropriated $1,000 that was meant to be deposited in a customer's bank account by putting it in his own pocket.
