Answer:
Margin of safety=55.6%
Explanation:
The formula for the operating income is as folows;
operating income=Sales revenue-total cost
where;
operating income=$ 15,000
Sales revenue=S
total cost=variable cost+fixed cost
variable cost=70% of S=(70/100)×S=0.7 S
fixed cost=$12,000
replacing;
15,000=S-(0.7 S+12,000)
15,000+12,000=0.3 S
27,000=0.3 S
S=27,000/0.3
S=Answer:
Explanation:
The formula for the operating income is as follows;
operating income=Sales revenue-total cost
where;
operating income=$ 15,000
Sales revenue=S
total cost=variable cost+fixed cost
variable cost=70% of S=(70/100)×S=0.7 S
fixed cost=$12,000
replacing;
15,000=S-(0.7 S+12,000)
15,000+12,000=0.3 S
27,000=0.3 S
S=27,000/0.3
S=$90,000
Current sales=$90,000
The formula for margin of safety is as follows;
Margin of safety=(Current sales level-break even point sales level)/current sales levels
At break even,
Operating income=0
0=S-(0.7 S+12,000)
0=S-0.7 S-12,000
0.3 S=12,000
S=12,000/0.3
S=40,000
Break even sales=$40,000
replacing;
Margin of safety=((90,000-40,000)/90,000}×100
Margin of safety=55.6%
Answer:
the exact internal rate of return is 40%
Explanation:
The computation of the exact internal rate of return is shown below
Given that
Initial investment = -$89,000
Year 1 to Year 18 = $35,684 each year
Based on the above information
We use the IRR formula
= IRR()
After applying the internal rate of return formula, the exact internal rate of return is 40%
So the same is considered and relevant too
Answer: Activity based costing "<u>a. groups costs into meaningful buckets that are then distributed based on the activity or product they support.".</u>
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Explanation: This system is based on the fact that the products consume activities and the activities resources (costs). Thus, if you have information on what each activity costs and what activities are necessary for the generation of each product, then you can know how much each product costs from the activities that constitute it.
Answer:
The best way for the producer of Bubbles to differentiate itself from the foreign multinational is to create a specific market focus or niches for itself.
Explanation:
By creating a dedicated and specific market niche, the producer of bubbles have a specific target market out of the whole market whom they can influence consequently differentiating themselves from the multinationals.
