Cindy is taking out a loan today. The cash amount that she will receive today is equal to the present value of the lump sum paym
2 answers:
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Budgeting is the earning of the estimated income and its expenditure on various bills and daily utilities. For maintaining a balance of income, budgeting is done so that expenses do not exceed the income.
$2,850 is a good yearly estimate of repairs and maintenance for the Davis family’s home.
<h3>How to estimate repair and maintenance?</h3>Given,
- Down Payment = $20,000
- Mortgage = $265,000
- Purchase price of the house = $285,000
1% of the purchase price is budgeted for repair and maintenance (X) and will be estimated as:
Therefore, <em>option c</em>. $2850 is the repair and maintenance cost.
Learn more about budgeting here:
Answer and Explanation:
The computation is shown below:
The Selling price per unit = $225,000 ÷ 7500 = $30
ANd,
Variable cost per unit = $135,000 ÷ 7500 = $18
a) Breakeven point = Fixed cost ÷ Contribution margin per unit
= $48,000 ÷ ($30 - $18)
= 4000 units
b) Breakeven dollars = Breakeven point × selling price per unit
= 4000 × 30
= $120,000
C) Margin of Safety in dollars = Sales Revenue - Breakeven dollars
= $225,000 - $120,000
= $105,000
d) Margin of Safety in percent
= $105,000 ÷ $225,000
= 46.67%
