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Komok [63]
3 years ago
14

The difference between the current sales revenue and the sales at the break-even point is called the:a. price factor b. operatin

g leverage c. contribution margin d. margin of safety
Business
1 answer:
AlekseyPX3 years ago
4 0

Answer:

d. margin of safety

Explanation:

The margin of safety is the difference between the recorded sales and break-even sales. It is used to indicate the level by which sales can decrease before a project becomes unprofitable. The formula for calculating the margin of safety is actual sales minus break-even point divided by the actual sales.

The margin of safety is also referred to as a safety margin. It can be calculated either in units or dollar value. Managers and investors set the size of the margin of safety, depending on their preference and type of investment.

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Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project's MIRR? No
SpyIntel [72]

Answer:

the project's MIRR is 13.50 %.

Explanation:

MODIFIED INTERNAL RATE OF RETURN (MIRR)

-It is the rate that causes the Present Value of the Terminal Value (Future Cash flows at the end of the Project) to equal Present Value of Cash outflows.

-MIRR assumes a reinvestment rate at the end of the project

The First Step is to Calculate the Terminal Value at end of year 3.

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)

                                 = $350 x (1.11) ^ 2 + $350 x (1.11) ^ 1 + $350 x (1.11) ^ 0

                                 = $431.24 + $388.50 + $350.00

                                 = $1,169.74

The Next Step is to Calculate the MIRR using a Financial Calculator :

(-$800)        CFj

0          CFj

0          CFj

$1,169.74  CFj

Shift IRR/Yr 113.50 %

Therefore, the MIRR is 13.50 %

6 0
3 years ago
Money is a productive asset. Its opportunity cost is:
dsp73

Answer:

The correct answer is A. The time value of money.

Explanation:

In economic theory, the temporary value of money is intended to represent the idea that a dollar of today is worth more than a dollar of the future, even after adjusting for inflation, because a dollar can now generate interest or other returns up to moment in which the dollar of the future is received. This theory is based on the calculation of present or current value.

8 0
3 years ago
Which of the following is a current asset?
Arturiano [62]

Answer:

D

Explanation:

Current assets are considered short-term assets because they generally are convertible to cash within a firm's fiscal year, and are the resources that a company needs to run its day-to-day operations and pay its current expenses. ...

3 0
3 years ago
When making college visits, you may be able to...
Pavlova-9 [17]
I think it'd be E. I hope that helps!

3 0
3 years ago
Rock Bottom Gold Company recently repurchased 7 million shares of its common stock for $47 per share. The intent of the repurcha
Eddi Din [679]

Answer:

a. Assets = Liabilities  + Stockholder's Equity

Assets = Cash (7,000,000*$47) = -$32,90,00,000

b. Liabilities = No Effect

c. Stockholder's Equity = -$32,90,00,000

5 0
2 years ago
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