1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
18. A company is in its first month of operations. On January 15, the company receives $600 from customers who will receive 10 v
Amiraneli [1.4K]

Answer:

The adjusting entry at the end of January:

Debit Unearned revenue: $480

Credit Revenue: $480

Explanation:

When recceived $600 on January 15 from customer, the company must record:

Debit Cash: $600

Credit Unearned revenue: $600

because all lessons are not provided by the company, the company can't recording revenue.

On January 31, the company provided 8 lessons, so the company must recording revenue for these lesson (8x$60=$480) by adjusting entry.

3 0
3 years ago
Larson Company on July 15 sells merchandise on account to Stuart Co. for $1,000, terms 2/10, n/30. On July 20 Stuart Co. returns
pickupchik [31]

Answer:

b. $588

Explanation:

Terms 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

When Larson Company sold merchandise, the following entry was made to recording revenue (sales) and the receivable:

Debit Receivable Account $1,000

Credit Revenue $1,000

On July 20 Stuart Co. returns merchandise, the entry is made to record the decreasing of Receivable Account:

Debit Revenue $400

Credit Receivable Account $400

The balance Receivable Account of Stuart Co. = $1000-$400 = $600

On July 24, Stuart Co. makes the payment, the sales discount was:

$600 x 2% = $12

The amount of cash received = $600-$12=$588

The following entry is made:

Debit Cash: $588

Debit Sales discount: $12

Credit Receivable Account $600

7 0
3 years ago
On February 15, Jewel Company buys 7,300 shares of Marcelo Corp. common stock at $28.56 per share plus a brokerage fee of $400.
andriy [413]

Answer:

A. Debit Cash $8,614; credit Dividend Revenue $8,614.

Explanation:

The journal entry for recording the dividend as on April 15 is shown below:

On April 15

Cash Dr (7,300 shares × $1.18 per share) $8,614

       To Dividend revenue $8,614

(Being the dividend is recorded)

For recording this here we debited the cash as it increased the assets and credited the dividend revenue as the revenue is also increased

Therefore the correct option is A.

4 0
3 years ago
_____ is a strategy used when giving constructive feedback.
lorasvet [3.4K]
The Sandwhich technique is a strategy used when giving constructive feedback. 
3 0
3 years ago
On June 2nd, SEAkayak had the following details for its common stock: 1,000,000 shares authorized, 400,000 shares issued, and 40
kompoz [17]

Answer:

The authorized common stock shares remain 1,000,000 shares.

Explanation:

The authorized shares are not affected by movements in the shares, like issue of shares, repurchase, and resale of treasury stock shares.  The authorized shares, therefore, represent the number of shares that the company is legally bound to issue without exceeding.  The implication is that the company is free to issue shares less than or equal to the authorized shares, but it may not issue more than the authorized until it obtains a new authorization.

The movements are accounted for in separate accounts called Issued Common Stock Account and Treasury Stock Account.  The treasury stock account is a contra account to the Common Stock.

3 0
3 years ago
Other questions:
  • If your instructor advises you to use the keys at the top of your keyboard that are identified by the letter f and then a number
    15·1 answer
  • For any given product, _____ is determined by what the market will bear.
    15·1 answer
  • A firm has a debt-to-equity ratio of 1.0. If it had no debt, its cost of equity would be 12 percent. Its cost of debt is 9 perce
    11·1 answer
  • Zeitgeist Company manufactures silicon sleeves for MP3 players. In August of last year, Zeitgeist began producing the colorful s
    7·1 answer
  • Ben and his wife jenny have a disagreement over what kinds of investments they should make for long term financial security. ben
    13·2 answers
  • Baby boomers represent a huge demographic segment for travel marketers. baby boomers are also heavily motivated by self-fulfillm
    15·1 answer
  • Bronson Corporation incurs the following annual costs in producing 30,000 video cards for computers: However, if Bronson purchas
    15·1 answer
  • At the end of each of the next 5 years, you will deposit the following amount into your savings account: Year Cash Flow 1 $200 2
    15·1 answer
  • A.The loss on the cash sale of equipment was $22,125 (details in b).
    11·1 answer
  • Ɏ₳₦₭ɆɆ ₩ł₮Ⱨ ₦Ø ฿Ɽł₥
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!