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timurjin [86]
3 years ago
6

Mcmurtry Corporation sells a product for $110 per unit. The product's current sales are 12,200 units and its break-even sales ar

e 10,614 units. The margin of safety as a percentage of sales is closest to:_______
a. 13%
b. 15%
c. 87%
d. 85%?
Business
1 answer:
denis23 [38]3 years ago
5 0

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Mcmurtry Corporation sells a product for $110 per unit. The product's current sales are 12,200 units and its break-even sales are 10,614 units.

<u>The margin of safety is the number of units or amount of dollars that provide genuine profit to the company. It is the "margin" that gives room to try new strategies</u>.

It is calculated using the following formula:

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio=  (12,200 - 10,614) / 12,200

Margin of safety ratio= 0.13=13%

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Illusion [34]

Answer:

Explanation:

A.

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B.

Any distribution that avoids all of the above unsatisfactory combinations and spreads the workload evenly is acceptable. The key is not to have anyone with both custody and a recording function that could be used to conceal a theft. One such combination is: First employee accounts payable ledger, accounts receivable ledger, bank reconciliations Second employee general ledger, disbursements journal, credits on returns and allowances Third employee prepare checks for signature, cash receipts

1st employee - G/L, reconcile, sales return and allowance (control)

2nd employee: Cash receipts journal, cash disbursement (assets)

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(1) Checking the accuracy and reliability of accounting data.

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2 - Detecting management fraud.

The number of personnel in an information systems department may limit the extent to which segregation of duties is feasible. What is the minimum amount of segregation of duties that will permit satisfactory internal control?

There needs to be a minimum of 3 personnel in an information systems department to feasibly segregate duties.

Programming, operating, techical services

8 0
2 years ago
Jennifer Searcy, a single mother, has three dependent children. As of December 31, 2018, their ages were as follows: Sydney (7),
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Answer:

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Option 4 is correct.

4 0
3 years ago
Adkins Bakery uses the modified half-month convention to calculate depreciation expense in the year an asset is purchased or sol
Dmitry_Shevchenko [17]

Answer:

Depreciation expense= $36,875

Explanation:

Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.

<em>An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:</em>

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Cost - 220,000

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Annual depreciation = (220,000- 43,000)/4 =44,250

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<em>Under the half-month convention, a full month depreciation is charged where an asset is first put to at the middle month of the month. </em>

<em>Thus March 17, 2018 to December 2018 is taken to be 10 full months</em>

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4 0
2 years ago
American Chip Corporation’s reporting year-end is December 31. The following is a partial adjusted trial balance as of December
guajiro [1.7K]

Answer:

Explanation:

The closing entry for the following accounts are shown below:

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  Interest Revenue A/c Dr $3,500

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 (Being revenue account closed)

2. Income summary A/c Dr $593,200

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                          To Interest Expense $5,100

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                            To Rent Expense $16,000

                             To  Insurance expense $6,100

(Being expenses accounts are closed)

3. Income summary A/c Dr $170,300

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= $170,300

5 0
3 years ago
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natima [27]

Answer:

Option D. Any of the above.

Explanation:

The reason is that the contract is not formed until the both parties don't agree on the terms and conditions of the contract which includes:

  • New terms and conditions because as we know the business environment is consistently changing like inflation changes, etc (Option A).
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So all of the options can alter the contract existence. So the right answer is option D.

4 0
3 years ago
Read 2 more answers
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