First, you'll want to break down each item:
Sale price of a bear - $35
Fixed cost - $1,500
Variable cost of a bear - $24
If she sells 275 bears next month we will determine:
Margin of safety in units
Margin of safety in sales dollars
Margin of safety as a percentage of sales
Next, we will determine the dollar amount of sales and costs by multiplying the units sold by the price sold/cost of good
275 x $35 = $9,625
275 x $24 = $6,600
Fixed costs = $1,500
To find the margin of safety as a percentage of sales we will subtract the breakeven point from the current sales level and then divide by the current sales level
(Current sales level - breakeven point)/current sales level
$9,625 - $8,100 (fixed costs + cost of good)/ $9,625 =
15.84% is the margin of safety as a percentage
To find the margin of safety in unites we will subtract the breakeven point from the current sales level and then divide by the price per unit sold
$9,625 - $8,100 / 35 = 43.57 units is the margin of safety as a unit
To find the margin of safety in sales dollars we will subtract the breakeven sales from actual sales
$9,625 - $8,100 = $1,525 is the margin of safety in sales dollars
You can also find the margin on sales as a percentage after finding the margin of safety in sales dollars by taking the margin of safety in sales dollars and dividing it by the actual sales and then multiplying it by 100.
$1,525/$9,625 = 0.1584 x 100 = 15.84%
When she determined to set her share of communication expenses at 4 percent of sales, it is an example of the use of the <u>competitive parity method.</u>
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Competitive parity refers to when one want to achieve standard or average results as compared to others in your industry or within one's firm.
Here, because the firm’s sales have increased to 4%, she decided to set her share of communication expenses at 4% of sales
It is obvious she is acting because of the movement of internal situation (increase of firm's sales)
Thus, the scenario of method is definitely known as Competitive parity.
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Answer:
The correct answer is A
Explanation:
Master-detail relationship is the relationship where the master states the parent and detail states a child, in which the master object controls or regulate some behaviors of the detailed object.
Cross object formula field is the one, which spans 2 related references and the objects that merge fields on the objects. So, a developer will use the Cross object formula field for displaying into the related list.
Answer:
does not have the ability to produce revenue.
Explanation:
Cost center managers have the responsibility to manage all the transactions within the center. Cost center budget per year and all the expenses are also managed by the manager only. The manager also takes of the costs following the given budget and does not have any responsibility regarding the revenue.
A cost center manager does not have the ability to produce revenue.
Answer:
The journal entries are made as indicated in the attached excel and working files screenshots.
Explanation:
The data given is used in the sheet.