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]
3 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]3 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
"In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 whe
Oksana_A [137]

Answer:

b. constant returns to scale because average total cost is constant as output rises.

Explanation:

The question has options. Below is the complete question.

<u>Complete Question</u>

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits

a. diseconomies of scale because total cost is rising as output rises.

b. constant returns to scale because average total cost is constant as output rises.

c. diseconomies of scale because average total cost is rising as output rises.

d. economies of scale because average total cost is falling as output rises.

The correct answer is explained below.

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits  constant returns to scale because average total cost is constant as output rises.

6 0
3 years ago
Read 2 more answers
Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor, Almos Garment Corp. If Almo
Novay_Z [31]

Answer:

The present of worth of machine operating cost is $ 228,061.55  

 

Explanation:

In calculating the present worth of the machine operating cost,I grew the cost of $34000 per year from year 3 onwards by 6% , thereafter I discounted the increased machine operating cost with the applicable discount factor in each year as shown in the attached spreadsheet.

Download xlsx
6 0
2 years ago
Europe places a $1 per pound import tax on lobsters
Mice21 [21]
Is this a question or a fact?
8 0
3 years ago
Jim was a crook. He embezzled $450,000 from his employer. When his employer found out about his misdeeds, before even conducting
kati45 [8]

Answer:

b. Jim may have been misrepresented in the story by the newspaper agency and the company might face legal consequences.

Explanation:

Jim has the right to take legal action against the company for releasing the story. The investigation had not been completed and all facts had not been established by the company.

Also the newspaper did not contact Jim to get his own side of the story before publishing, that could have revealed pertinent information about the case.

4 0
3 years ago
The consumer price index is a way that the us government measures ________.
Ronch [10]
Your answer would be
<span>Inflation</span>
Hope I helped!!
<span></span>
7 0
3 years ago
Read 2 more answers
Other questions:
  • Lawson Corp. uses IFR.S and the cost model for intangible assets. On March 1, year 1, Lawson acquired intangible assets with an
    15·1 answer
  • ULab Inc., a biotechnology firm, lost one of its offices in a fire. The employees did not have a fire drill, and the 10-story bu
    5·1 answer
  • Information overload is NOT a barrier to effective communication. True False
    14·1 answer
  • Define what the income statement reports by completing the following sentence: The income statement describes a company's Blank
    8·1 answer
  • Why is teen crashes a problem, especially for teen drivers?
    14·2 answers
  • Select the best answer to complete the sentence: An effective cost accounting system should match processes that consume resourc
    10·1 answer
  • With the slowdown of business, how can Starbucks ensure that the importance of leadership development does not get overlooked?
    9·1 answer
  • The first step in creating a cash flow statement is which of the following?
    14·1 answer
  • It is suggested you use which of the following to learn about the position for which you are being interviewed?
    15·1 answer
  • The two phases of new employee training are orientation and _________ .
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!