Answer:
The correct answer is A.
Explanation:
Giving the following information:
Mcmurtry Corporation sells a product for $110 per unit. The product's current sales are 12,200 units and its break-even sales are 10,614 units.
<u>The margin of safety is the number of units or amount of dollars that provide genuine profit to the company. It is the "margin" that gives room to try new strategies</u>.
It is calculated using the following formula:
Margin of safety ratio= (current sales level - break-even point)/current sales level
Margin of safety ratio= (12,200 - 10,614) / 12,200
Margin of safety ratio= 0.13=13%
<u>Solution and Explanation:</u>
The implicit cost of capital
Implicit cost of capital is the opportunity cost of capital which is already incurred but not reported as a separate cost/expense, Implicit cost is the cost which results from using an existing asset instead of selling or renting it.
For example when a businessman uses his/her existing land which has implicit cost of say $1000 per month but bought it for say $100 many years ago, so $1000 is its implicit cost/current market rent per month which is equal to its oppo
Answer:
ROI = Net operating income x 100
Average operating assets
ROI = $1,924,320 x 100
$6,000,000
ROI = 32.1%
The correct answer is C
Explanation:
ROI is the ratio of net operating income to average operating assets multiplied by 100.
When a company determines that a group of people of certain age range and gender will likely buy its product, it is finding its: <em>potential customers/market target.</em>
Every product has a specific group of people that share similar characteristics that it can meet their needs. The unique needs of that group of people is what companies and producers focus on to exploit in creating product and marketing strategy for.
Such unique group of people constitute the market target or potential customers for such product.
Therefore, when a company determines that a group of people of certain age range and gender will likely buy its product, it is finding its potential customers/market target.
Learn more about market target on:
brainly.com/question/24967768
