The type of account Samantha should recod the transaction is the contra account.
If sales volume increases and all other factors remain constant, then the Margin of safety will increase
Explanation:
The margin for safety (MOS) is described as an overall excess of current or expected revenue, expressed either in terms of currency or in units, or as a percentage of total revenues.
One of the main ways to increase the safety margin is through increasing the gross value per unit (if business conditions are favourable) and by reducing the variable cost per unit of the good. This can be accomplished by rising selling costs.
You will do 500 divide by 50 that will get you 10. that means quantive production scheduling means they will have less.
Answer:
$55,826
Explanation:
The computation of year 4 cash flow is shown below:
= Operating cash flow + required net working capital + after cash flow arise from salvage value
where,
Operating cash flow is $47,000
Required net working capital is $3,800
After cash flow arise from salvage value is
= Sale value - gain on salvage value × tax rate
The gain on salvage value is
= $5,400 - $3,800
= $1,100
So the after cash flow arise is
= $5,400 - $1,100 × 34%
= $5,400 - $374
= $5,026
Now the year 4 cash flow is
= $47,000 + $3,800 + $5,026
= $55,826
