The company's margin of safety in both dollar and percentage terms is $136,000 and 21.79% respectively.
The margin of safety is a company's sales over and above its break-even point are considered margin of safety.
Sales of a company that exceeds its break-even point generate profit.
The formula for Margin of safety(MoS) in dollars is as follows:
Substituting the provided values into the above calculation yields,
= $136,000
To calculate the Margin of safety percentage we use the following formula:
Substituting the provided values into the above calculation yields,
= 21.79%
Hence, The company's margin of safety in both dollar and percentage terms is $136,000 and 21.79% respectively.
Learn more about break-even point:
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Answer:
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Understanding ethical dilemmas
You may be faced with an ethical dilemma when something at work goes against your personal ethics, morals and values. This could be something that one of your colleagues or managers is doing, or something that you are doing yourself.
Answer:
C. $24,000
Explanation:
We assume that the company follows the percentage-of-sales method. In this method, the company ignored the previous balance of allowance for Doubtful Accounts
So, the amount of the adjusting entry to record the estimate of the uncollectible accounts would be
= Net credit sales × estimated percentage given
= $600,000 × 4%
= $24,000
All other information which is given is not relevant. Hence, ignored it
Answer:
1. Communicate. Families have their own way of communicating, and, as many family therapists will tell you, it is not always the best way. Defy convention and make open, regular communication an essential part of your family business. When you sense communication problems, confront them immediately. Larger issues at play? Bring in an outside consultant.
2. Set boundaries. Leaders of flourishing family-owned businesses know that setting boundaries is critical to establishing and maintaining success. Institute and uphold a clear separation between family and business. In other words, keep family issues out of the boardroom, and keep work at the office.
3. Practice good governance.Setting boundaries also extends to the governance of family-run companies. Good governance requires the involvement of leaders outside the family. This oversight—employed by leading family businesses worldwide—typically takes the shape of a professional, advisory, or supervisory board comprised of non-family members with a limited number of family representatives.
Explanation: