1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
A citizen group raised funds to establish an endowment for the Eastville City Library. Under the terms of the trust agreement, t
alisha [4.7K]

Answer:

<u>income statement for the year ended </u>

investment income                                 $48,000

Intergoverment grant                                 8,000

Net increase in fair value of investemnt  <u> 2,000</u>

Total Income                                              58,000

Expenditure - Subscription                       <u>(39,500)</u>

Net income                                                  <u>18,500</u>

<u />

Balance sheet as at the year end

Asset

cash                                                       $8,500

Investment                                            518,000

Accrued interest receivable                  <u> 2,000</u>

                                                          <u>      528,500</u>

Additional to permanent endowments   510,000

Net Income                                                 <u> 18,500</u>

                                                                  <u>   528,500</u>

Explanation:

6 0
3 years ago
Santana, Inc. reports the following liabilities (in thousands) on its January 31, 2014, balance sheet and notes to the financial
deff fn [24]

Answer:

$22,577.1

Explanation:

SANTANA INC.Balance Sheet (Partial)January 31, 2014

Current liabilitiesNotes payable $2,563.6

Accounts payable $4,263.9

Current portion of mortgage payable $1992.2

Warranty liability $1,417.3

Unearned rent revenue $1,058.1

Salaries and wages payable $858.1

Income taxes payable $265.2

Total current liabilities $12,418.4

Long-term liabilitiesMortgage payable$6,746.7

Bonds payable $1,961.2

Accrued pension liability$1,115.2

Notes payable $335.6

Total long-term liabilities $10,158.7

Total liabilities $22,577.1

($12,418.4 +$10,158.7)

3 0
3 years ago
In the town of linsberg, chuck is the only craft brewer. in the neighboring town of krugerville, justin and tom each run a craft
EleoNora [17]

<span>The town of linsberg would be the town that has higher prices and greater deadweight loss. This decision is plausible since Chuck is the only person in the town who runs a craft brewery and such exclusivity would mean he can raise higher prices since no competition is available to haggle prices in order to get costumers. He would have the greater deadweight loss since there would be a inefficiency in allocation resources and may cause him to monopolize the resources and business.</span>

6 0
3 years ago
Mike and Karen were divorced. Their only marital property was a personal residence with a fair market value of $1.5 million and
Soloha48 [4]

Answer:

Mike's recognized gain from the transfer of the house to him is:

$175,000

Explanation:

a) Data and Calculations:

Marital property = $1,500,000

Cost of property =  $575,000

Residual value =     $925,000

Alimony to Karen = $750,000 ($150,000 * 5)

Balance (Mike's) =  $175,000

$175,000 represents the excess of the fair market value of the marital property after deducting the cost of property and the alimony paid to Karen.  A gain of $175,000 is recognized by Mike after the property sale.

7 0
4 years ago
Consider the following scenario:
Nimfa-mama [501]

Answer:

The price would definitely increase

Explanation:

Inferior good are good that of low quality which are consumed by low income earners and with an increase in the income of the consumer of an inferior good, the demand for the good reduces.

Note: the demand for inferior good reduces because of increase in consumers income, so this has nothing to do with the price.

On an economic sense, increase in cost of production, will definitely lead to an increase in the price of the goods produced.

8 0
4 years ago
Other questions:
  • Q 5.31: Which of the following balance sheet formats lists the assets on top and the liabilities and stockholders’ equity on the
    13·1 answer
  • Pluto Inc. is computer technology corporation that has been manufacturing laptops for the last five years. Recently, in the face
    5·1 answer
  • Caitlin has finished her schooling and training
    9·1 answer
  • You are an entrepreneur starting a biotechnology firm. If your research is​ successful, the technology can be sold for $ 30$30 m
    12·1 answer
  • QUESTION 23
    14·1 answer
  • (TCO E &amp; F) A bank is facing a forecast of rising interest rates. How should they set the repricing and duration gap?
    6·1 answer
  • Molly's Auto Detailers maintains its records on the cash basis. During 2021, Molly's collected $72,800 from customers and paid $
    12·1 answer
  • Use for business communications only and the disallowing of the transmission of confidential business information are recommende
    10·1 answer
  • g Mickey Company provided the following information for the year 2020: Retained earnings, beginning balance: $125,000 Retained e
    13·1 answer
  • Dr. Montgomery recently graduated from medical school and his wife bought him an engraved stethoscope. The stethoscope cost $160
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!