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asambeis [7]
4 years ago
13

Heather hudson makes stuffed teddy bears. recent information for her business follows: selling price per bear $ 35.00 total fixe

d cost per month 1,500.00 variable cost per bear 24.00 if she sells 275 bears next month, determine the margin of safety in units, sales dollars, and as a percentage of sales.
Business
1 answer:
andreyandreev [35.5K]4 years ago
5 0
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%  
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Answer:

40.22 hours

Explanation:

The computation of the time taken as follows:

= 26 minutes × 91 units

= 2,366

In hours

= 2,366 ÷ 60 minutes

= 39.43

The total time taken for machine step is

= 16 + 23

= 39 minutes

So, the total time taken is

= 39.43 + 39 minutes

= 40.22 hours

4 0
3 years ago
Zhang company reported cost of goods sold of $842,000, beginning inventory of $38,600 and ending inventory of $47,000. the avera
Anna35 [415]
Given: 
Beginning inventory = $38,600 
Ending inventory = $47,000  
To find: average inventory amount  
Solution:  
Average inventory = (Beginning inventory + Ending inventory) / 2  
($38,600+$47,000) / 2 = $42,800  
Average inventory amount = $42,800
3 0
3 years ago
Chang Industries has 2,000 defective units of product that already cost $14 each to produce. A salvage company will purchase the
tiny-mole [99]

Answer:

Sunk cost

Explanation:

-Incremental cost is the total cost of producing an additional unit.

-Sunk cost is a cost that has already been paid and that it is not possible to get it back.

-Out-of-pocket cost is a cost that requires a direct payment in the actual period.

-Opportunity cost is the cost of not receiving a benefit when you choose an alernative over another one.

-Period cost is a cost that is not associated with the production of goods.

According to this, the answer is that the $14 per unit is a sunk cost because the company has already spent that manufacturing the products and it is not able to recover that money.

6 0
3 years ago
Why is a business plan considered a living document?
steposvetlana [31]

Answer:

Explanation:

A Living Document. A business plan is often referred to as a “living document”. This is because a these plans are constantly changing. Whenever new developments in competition, marketing tools, the legal factors which relate to an industry, or others change a business plan must be updated so as to keep relevant.

3 0
3 years ago
g Assume that the reserve requirement is 11.69 percent. Banks do not hold excess reserves and there is no cash held by the publi
Katarina [22]

Answer:

$6.90 million

Explanation:

The computation is shown below:

Given that

The Reserve requirement is 11.69%

And, the money supply is $59 million

Based on the above information

First the money multiplier should be find out i.e.

= 1 ÷ 0.1169

= 8.55

Now the amount that need to buy is

= $59 ÷ 8.55

= $6.90 million

Hence, the federal reserve required to purchase $6.90 million worth of bonds

4 0
3 years ago
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