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
vlada-n [284]
3 years ago
11

The following monthly data are available for Lumberyard Company. which producesonly one product: Selling price per unit, $42; Un

it variable expenses, $14; Total fixedexpenses, $42,000; Actual sales for the month of June, 3,000 units. How much is themargin of safety for the company for June?
Business
1 answer:
aleksley [76]3 years ago
7 0

Answer:

margin of safety= 50%

Explanation:

Giving the following information:

Selling price per unit, $42.

Unit variable expenses, $14.

Total fixed expenses, $42,000

Actual sales for June, 3,000 units.

The formula for the margin of safety is:

Margin of safety= [(current sales level - break-even point)/current sales level]*100

First, we need to calculate the break-even point

break-even point= fixed costs / contribution margin

break-even point= 42000/(42-14)= 1500 units

margin of safety= (3000 - 1500/3000)*100= 50%

You might be interested in
The value of what type of money comes from what it is made of?
vladimir1956 [14]

Answer:

a.representative money

Explanation:

sure po ako dyan na ayan po ang sagot maraming salamat po

3 0
3 years ago
In most societies, resources are allocated by
Maksim231197 [3]
In most societies, resources are allocated by the combined action of millions of households and firms.
Resources are very important to setup and build societies. Resources are scare and this is the reason why societies and households faces many decisions. How societies manage scare resources, we study this in economics.
7 0
3 years ago
ppreciation of the euro relative to the U.S. dollar will cause a U.S.-based MNC's reported earnings (from the consolidated incom
Tems11 [23]

Answer:

Decrease or fall, Purchasing

Explanation:

Appreciation is the term which is defined as the increase in the currency value relative to the another currency, which could be exchanged for a huge amount of foreign currency.

So, when there is appreciation in euro in relation to US dollar, it cause US grounded MNC reported earnings to decrease as the US dollar will not be exchanged because euro is appreciated.

And when the firm desire to reduce the exposure to the exchange rate movements, it might stabilize the reported earnings through purchasing the euros in the foreign exchange market.

6 0
3 years ago
"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
Custom Cars purchased $39,000 of fixed assets two years ago that are classified as 5-year MACRS property. The MACRS rates are 20
maw [93]

Answer:

The after-tax cash flow (after-tax salvage value) from the sale is $18,941.20

Explanation:

The computation of the after-tax cash flow is shown below:

= Purchase of fixed asset - depreciation charged - sale value of machine + profit on sale - tax rate

= $39,000 - ($39,000 × 20% + 32%) - $19,000 + $280 -  21%

= $39,000 - $20,280 - $19,000 + 280 - $58.80

= $18,720 + $280 - $58.80

= $18,941.20

The $18,720 reflect the Written down value of the fixed asset which come from

= $39,000 - $20,280

3 0
3 years ago
Other questions:
  • Martha Gentry won a $16,800,000 lottery and elected to receive her winnings in 30 equal annual installments. After receiving the
    5·1 answer
  • To be a team, a group must be composed of members with complementary skills.T/F
    15·1 answer
  • Poppy co. uses a periodic inventory system. beginning inventory on january 1 was understated by $30,000, and its ending inventor
    9·1 answer
  • About (a) A manager must select three coders from her group to write three different software projects. There are 7 junior and 3
    7·2 answers
  • An owner wants to sell his house and prefers to save the commission. He lists with a broker on the basis that if the property is
    10·1 answer
  • Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the
    9·1 answer
  • Forecast error a. is associated with measuring forecast accuracy. b. takes a positive value when the forecast is too high. c. ca
    7·1 answer
  • When troubleshooting for connectivity issues, why would is it important to check the physical conditions of the network before r
    9·2 answers
  • Studies show that Multiple Choice the more independent the central bank, the lower the average annual rate of inflation. the mor
    7·1 answer
  • Beneficiary election for a taxable account is ___________________ at account opening and it is formally called _________________
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!