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
borishaifa [10]
4 years ago
12

Margin of Safety Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $4

5 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 1,650. Required: 1. Calculate the margin of safety in terms of the number of units. units 2. Calculate the margin of safety in terms of sales revenue. $
Business
1 answer:
valina [46]4 years ago
3 0

Answer:

Margin of safety - Units =3350

Margin of safety - Sales Revenue = $251250

Explanation:

Margin of Safety indicates how much sales may decrease before a loss can be made.

<u>Margin of safety - Units</u>

Margin of safety - Units = 5000-1650 =3350

<em>Margin of Safety as a % = 3350/5000 ×100 = 67%</em>

<u>Margin of safety - Sales Revenue</u>

Expected Sales = (5000 × $75) =$375000

Margin of Safety = $375000 × 67% = $251250

You might be interested in
Nolte Co. has 4,800,000 shares of common stock outstanding on December 31, 2012. An additional 200,000 shares are issued on Apri
12345 [234]

Answer:

5,110,000 and 5,170,000.

Explanation:

earnings per share EPS = (net income - preferred dividends) / weighted average of outstanding shares

  • 4,800,000 at the beginning of the year
  • 200,000 issued April 1 = 200,000 x 9/12 = 150,000
  • 480,000 issued September 1 = 480,000 x 4/12 = 160,000

weighted average outstanding shares = 4,800,000 + 150,00 + 160,000 = 5,110,000

diluted shares = ($6,000,000 / $1,000) x 40 x 3/12 = 60,000

diluted EPS = (net income - preferred dividends) / (weighted average of outstanding shares + diluted shares)

weighted average of outstanding shares + diluted shares = 5,110,000 + 60,000 = 5,170,000 shares

4 0
3 years ago
John is an entrepreneur who plans to enter a franchise contract with a hotel business. which of these is an advantage that John
umka2103 [35]

Answer:

The correct answer would be option C, He will be able to gain knowledge and support from the hotel business to run the franchise.

Explanation:

Franchise is basically a contract between two parties in which one of the party who is owning the business is ready to sell his business rights to use its name and products to the other party. The other party can open the same business with the same name and products or services and run that business. In this type of contract, a continuous help and support is given to the franchisee to run the business. So if John being an entrepreneur wants to enter into the franchise contract, then he will surly be able to gain knowledge and support from the hotel business to run the franchise.

3 0
3 years ago
Read 2 more answers
Bad Debts account has a credit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts
White raven [17]

Answer:

$14,300

Explanation:

Based on the information given we were told that the​ management of the company estimated that the amount in the uncollectible accounts will be the amount of $14,300 which means that the amount of $14,300 will be the balance of the Allowance for Bad Debts that should be reported on the company balance​ sheet.

5 0
3 years ago
What determines how the burden of tax is divided between buyers and sellers? Why?
Artemon [7]

Answer:

Explanation:

Taxation is the means by which the government  gets most of its  revenue so it is the duties of private or publicly owned organizations and also the citizen to pay their taxes used by the government to fund all its projects. the taxes generated by the government are then divided among buyers and sellers.

The elasticity of demand is the main determinant of how burden of tax is divided between buyers and sellers.

6 0
4 years ago
Read 2 more answers
I need help with this, struggling <br> no links please!! <br><br> The subject is Economics/Business.
svet-max [94.6K]

Answer:

The answer is producers need to know what consumers want so they can sell more and make more profit.

8 0
3 years ago
Read 2 more answers
Other questions:
  • The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales
    12·1 answer
  •   Which of the following business entities would allow you the most personal control?
    14·2 answers
  • A university that focuses its advertising on offering a sound curriculum with consistent course offerings, extensive placement s
    14·1 answer
  • What are the costs of "freebie" items
    11·2 answers
  • The exchange of a good or service is
    6·1 answer
  • What is 6 cubed so like 6 with exponent 3
    9·2 answers
  • The user input device for a PDA is a (an)
    7·1 answer
  • When advertising increases brand loyalty for your company's brand, then the company's demand curve becomes:
    13·1 answer
  • The top five cities where venture capitalists are investing their money represent 10% of the global total.
    6·1 answer
  • An important goal of parental discipline is to help the child adopt parental standards. the most effective disciplinary strategy
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!