Answer:
d.the company is precisely breaking even.
Explanation:
Margin of safety is referred to current sales - Break even sales ratio to current sales as a percentage.
Basically it is quoted as follows:
Therefore, when the current sales = Break even sales then only the company will have margin of safety = 0
Thus, at 0 margin of safety the company basically is at no profit no loss situation, that is break even.
Share Ownership by Individuals.
Did you know owning shares means tax advantage. Your tax situation can benefit from using the tax advantage that come with fully franked dividends.owning shares also means you are a company owner. When you are buying shares you are buying the company`s asset and its profits. All that told there many advantages that come along with purchase of shares by an individual who wishes to invest his capital in shares.
Benefits of Owning Shares.
1. Stock Owners Take Advantage of a Growing Economy.
As the economy grows so do cooperates earning that is because economic growth creates income this will create a consumer demand that will automatically drive more revenue into companies register an lead to rise company`s share value.
2. Easy to Buy.
The stock market has made it easy to by shares from companies. They can be purchased through a broker, financial planner or online. Once you have set up an account you can stock at any minute. The stock market runs 24 hours, five days a week making the market reliable and sufficient.
3.They are the Best Way to Stay Ahead of Inflation.
Historically stocks have averaged an annual return of 10%. That is better than the annual inflation of 3.2%. It means you have a longer time horizon. That way a stock owner is limited to the risks aligned with the stock market.
4. They are easy to sell.
The stock market allows you to sell your shares at anytime. That will surely help if you really need the cash in a hurry. One disadvantages related to this is that the prices are really volatile so the shareholder runs the risk to make losses when the make haste decisions.
5. You make money in two ways.
Many investors tend to by shares when they have low prices and sell when they are high. They invest in companies that appreciate in value at at either a fast rate or moderate rate. This attracts both day traders and buy-hold investors and this bridges the gap in making money in to ways.
Summery.
A well defined portfolio will provide most benefits and fewer risk arising to stock ownership. to exchange you shares at a limited risk and get to earn more experts advice apart from stock ownership alone have a mix of stock bonds and commodities. This has proven to be the best way to make highest returns at lower risk. It is important to note that shareholders in stock market contribute close to 80% of the revenue in the market.
<span>We look at how much all buyers want to buy and are willing to do so. If buyers are not wanting to purchase a certain product, the overall demand will go down, and the reverse is true when buyers are positive toward a product.</span>
I think reading panel is the correct option
Hope this helps
-AaronWiseIsBae
Answer:
The answers are:
- A change in sales mix from high-margin to low-margin items may cause total profits to decrease despite an increase in total sales.
- A change in sales mix from low-margin to high-margin items may cause total profits to increase despite a decrease in total sales.
Explanation:
A company's profit is affected by its sales mix. Profits will always be higher if high margin products or services make up a large proportion of the sales mix. Even if total sales decrease, due to a decrease in the sales of low margin products, the company's profits might increase if more high margin products are sold.
For example, a Ford sells mostly pick up trucks, SUVs and cars. The profit margin from car sales is very low, so in order to make a larger profit the company must focus on selling more pick up trucks and SUVs. Even if the company losses market share by not selling cars, it will make more money by selling high margin products.
