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.
Last option would be correct
Answer:
a. 208.57 units
b. 104.29 units
Explanation:
a. The computation of the economic order quantity is shown below:
= 208.57 units
b. And, the average inventory is
= Economic order quantity ÷ 2
= 208.57 units ÷ 2
= 104.29 units
We simply applied the above formulas for calculation of the economic order quantity and the average inventory and the same is shown above
Answer:
$7,250
Explanation:
You can deduct medical expenses <u>that exceed</u> 7.5% of your AGI (changes, but is currently at this level).
170,000 x .075 = 12,750
20,000 - 12,750 = $7,250
I hope this helps!
-TheBusinessMan