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EastWind [94]
3 years ago
10

Arthur corporation has a margin of safety percentage of 25% based on its actual sales. the break-even point is $300,000 and the

variable expenses are 45% of sales. given this information, the actual profit is:
Business
1 answer:
Phantasy [73]3 years ago
4 0

Actual Profit (P) is equal to Actual Sales (S) minus Total Expenses (E). Given that the Margin of Safety percentage (M) of Total Sales is 25%, we can establish an equation relating the Total Sales, Break-even point and M. It would be S - $300,000 = 0.25S, since Margin of Safety is equal to Total Sales minus Break-even point. Solving for S would result to $400,000. Given that E is equal to 45% of S, E would then be equal to $180,000. Solving for P, P = $400,000 - $180,000. Therefore, P is equal to $220,000.

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Mumbai Travel Services provided the following​ information: Direct labor​ rate: $ 40 per hour Predetermined allocation rate for
galben [10]

Answer:

True

Explanation:

Labour rate (indirect cost) = $40 per hour

Labour rate (Direct cost) = $22 per hour

The total cost per hour is $40 + $22 = 62

For five hours the total labour cost will be = 62 * 5 = £310

According to the results, Mumbai travel will make a profit of $ 40.

8 0
3 years ago
___________________ are cost that make customers reluctant to switch to another product or servicce.
pashok25 [27]

Answer:

Switching cost

Explanation:

Switching cost may be defined as the amount which is related to the consumer for the purpose of changing the supplier to the another one. So, the greater the cost of switching, the more will be hard or costly the switch will be.

Therefore according to the above explanation, the correct answer is Switching cost.

3 0
2 years ago
Laverne purchased a new piece of equipment to be used in its new facility. The $355,000 piece of equipment was purchased with a
Radda [10]

Answer:

Yr. amount Interest payment balance

1. 319,500 22365. (77923). 263,942

2. 263,942.18,476. (77,923). 204,495

3. 204,495 14315. (77923). 140,887

4. 140,887. 9862 (77923). 72,826

5. 72826. 5098. (77,923). 1

Explanation:

The interest charge is on the total amount due at the end of the year which is assumed to have been made available to the debtor, the annual payment is deducted from the addition of interest and principal due and the balance due is brought forward to be defray in subsequent years. The balance is expected to show zero but the balance of one shown is a roundup error.

8 0
3 years ago
Inventory is important in the supply chain for many different reasons. Why would you invest the​ company's money for inventory a
Makovka662 [10]

Answer:

All the answers are right

Explanation:

A.To provide a hedge against inflation. : in an inflationary economy, a company can invest in inventory in order to be prepared for the higher prices of raw materials to come. So they can maintain the company´s profit.

B. To tightly synchronize production and distribution processes: inventory of final products can help to minimize the effects of unexpected production problems.

C. To ensure that item cost is maximized: A company can buy a bulk of raw material since the cost of a large number of units is lower. So the final product's cost will be maximized.

D. to tightly synchronize a​ firm's production with its​ customers' demand: for example in a seasonal demand, There are certain months when the demand exceeds the production capacity. In theis case, in the lower season months, the company will be increasing the inventory in order to meet the demand when the high season comes.

6 0
3 years ago
If a gain of $5,278 is realized in selling (for cash) office equipment having a book value of $50,852, find the total amount rep
Alina [70]

Answer:

B) $56,130

Explanation:

The cash flow statement shows how the company's operating, investing and financing activities affect the flow of cash by generation or use.

The investing activities section is where the purchase of fixed assets and the amount received for the disposal of these assets are accounted for.

Given that a gain was realized and the book value of  the asset was given, the amount received for the disposal

= $5,278 + $50,852

= $56,130

This is the amount that will be reported in the investing activities section of the statement of cash flows as an inflow.

6 0
3 years ago
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