When writing a networking letter, respect your recipient by ____

Selling price $ 200 per unit

djverab [1.8K]

Answer:

1) Margin of safety = $1,000,000 so that is c)

2) Margin of safety (%) = 20%, that is a)

Explanation:

Hi, first, we need to introduce the formulas to use.

Margin of safety (Dollars)

$MarginSafety=ActualSales-BEP(dollars)$

Margin of safety (%)

$MarginSafety=\frac{CurrentSales-BEP(dollars)}{CurrentSales} *100$

Where

BEP = Break even point in dollars

This means that we need to find the break even point first, the formula to use is:

$BEP(units)=\frac{FixedExpenses}{Price-VarExpense}$

From there, we need the break even point in dollars, so:

$BEP(dollars)=BEP(units)*Price$

Everything should look like this

$BEP(units)\frac{1,000,000}{200-150} =20,000$

And the BEP in dollars is:

$BEP(dollars)=20,000*200=4,000,000$

Now, we know that our actual level of sales is 25,000*$200=$5,000,000, therefore Ralph Corporation margin of safety is:

$MarginSafety=5,000,000-4,000,000=1,000,000$

So, the answer is c. Ralph Corporation’s margin of safety in dollars is $1 million.

Now for the next part, everything should look like this.

$MarginSafety(percent)=\frac{5,000,000-4,000,000}{5,000,000} *100=20$

Then, the answer is a. Ralph Corporation’s margin of safety in percentage is 20%

Best of luck.

7 0

4 years ago

If the nominal interest rate is 18 percent and the real interest rate is 8 percent, the inflation rate is

Kamila [148]

Based on the nominal interest rate and the real interest rate, the inflation rate must be 10%.

<h3>What is the inflation rate?</h3>

The inflation rate is the difference between the nominal rate and the real interest rate.

It can be found as:

= Nominal rate - Real interest rate

Solving gives:

= 18% - 8%

= 10%

In conclusion, the inflation rate is 10%.

Find out more on inflation rates at brainly.com/question/25877453.

6 0

2 years ago

Exporter of US in 2013

k0ka [10]

In 2013 the us received exports from China, France, England, and many more.

3 0

3 years ago

At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied.

SIZIF [17.4K]

Answer:

$2.79 per unit

Explanation:

Given that :

Beginning WIP direct materials $ 38, 000

Beginning WIP conversion costs $20,250

Costs of materials added $ 393, 100

Costs of conversion added $271,125

WIP beginning (50% for conversion) 20,200 units

Units started 120,500 units

Units completed and transferred out 106,700 units

WIP ending (60% for conversion) 34,000 units

We are to find the cost per equivalent unit for direct materials? (Round your final answer to the nearest cent.)

Let first calculate the total equivalent units for direct materials which is:

= Units completed and transferred out + WIP ending

= (106,700 + 34000) units

= 140700 units

The cost per equivalent unit for direct materials = Costs of materials added (a)/ equivalent number of unit (b)

The cost per equivalent unit for direct materials = $ 393, 100/140700 unit

The cost per equivalent unit for direct materials = $2.79 per unit

3 0

3 years ago

Fill in the blanks: 1. The situation when law of demand is not applicable is known as it's............ 2. When price of one good

Kryger [21]

Answer:

1. The situation when law of demand is not applicable is known as it's EXCEPTION.

2. When price of one good affects to the demand for other good, this situation is known as CROSS ELASTICITY OF DEMAND

3. Demand is the effective desire backed by the ABILITY and WILLINGNESS to buy the product.

Explanation:

Demand is a term that is born out of the human desires , wants or needs.

Demand can be defined or referred to as the amount a consumer is able and willing to pay in other to purchase goods and services that they desire or want.

The Law of demand states that the Quantity of goods and services demanded is inversely proportional to the prices of these goods and services. This means when the prices of goods increase, the quantity demanded decreases and when the prices of goods decreases ,the quantity of goods and services demanded increases.

Elasticity of Demand can be defined as the responses or effects of changes in price of goods and services on changes in the quantity demanded.

We have 4 types of Elasticity of Demand

a) Price Elasticity of Demand: This is when the quantity of goods and services demanded is affected by the change in price.

b) Price Elasticity of Supply: This is when the quantity of goods and services supplied is affected by the change in price.

c) Cross Elasticity of Demand: This is when the price of one good affects to the quantity demanded for other good,

d) Income Elasticity of Demand: This when the quantity of goods and services demanded is affected by the changes in the income of the consumer.

There are situations whereby the law of demand is not applicable and this is referred to as it's exceptions. Those situations are:

a) The type of goods and services.

b) When changes in the price of the goods and services is expected by consumers.

c) Changes that occurs in fashion or styles of a particular product ( This is when a product goes out of fashion or the style becomes outdated)

4 0

3 years ago

When writing a networking letter, respect your recipient by _____.