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Answer:
Margin of safety= $260,000
Explanation:
Giving the following information:
Sales= $485,000
Break-even point in dollars= $225,000
<u>To calculate the break-even point in sales dollars, we need to use the following formula:</u>
Margin of safety= (current sales level - break-even point)
Margin of safety= 485,000 - 225,000
Margin of safety= $260,000
Answer:
decline stage
Explanation:
In this stage the company has already took the benefits of issuing stocks as a way of funding. Had managed to make great investments, alliances, projects, that lead to a powerful market position. Then, having their stocks shared with lots of stakeholders is more a burden than a blessing. For this reason, they prefer to consolidate the control of the company as they don’t see valuable opportunities in the future market scenarios.
I believe she should get notes from her friend if she does her and her friend can study together. That is proven in a study that if you tutor/teach or study with a person, family member or friend it improves your memory and helps you remember the things you study as well.
Answer:
$10.67
Explanation:
Data provided in the question:
Initial cost = $3
Initial selling cost = $5
Initial sales = 4000
with $1 increase in price she loses 300 sales per month
Now,
Let the increase in price which maximizes the profit be '$x'
Therefore,
Final selling price = $5 + x
Final sales = 4000 - 300x
Thus,
Revenue = Final selling price × Final sales
= ( 5 + x)( 4000 - 300x)
= 20,000 - 1500x + 4000x - 300x²
= 20,000 + 2500x - 300x²
Total Cost = Initial cost × Final sales
= 3(4000 - 300x )
= 12,000 - 900x
Now,
Profit = Total revenue - Total cost
or
P = [ 20,000 + 2500x - 300x² ] - [ 12,000 - 900x ]
or
P = 8,000 + 3400x - 300x²
for point of maxima 
Thus,
0 = 0 + 3400 - 300(2x)
or
0 = 3400 - 600x
or
600x = 3400
or
x = 
Hence,
The price will be = $5 + x = 
= $10.67