Answer:
indicates what percent decline in sales could be sustained before the company would operate at a loss.
Explanation:
Since, Margin of safety ratio = Expected Sales - Break even sales
therefore,
The correct statement is : The margin of safety ratio indicates what percent decline in sales could be sustained before the company would operate at a loss.
Answer:
The answer is $148,000
Explanation:
Goodwill comes into effect or arises when a company acquires another company. Goodwill is an intangible asset. It is difference between the purchase price of a company and the net asset(total assets minus total liability)
Purchase price is $425,000
Fair value of the asset is $365,000
Total liability is $88,000.
Net asset = $365,000 - $88,000
=$277,000
Therefore, goodwill is $425,000 - $277,000
= $148,000
Answer:
The correct answer is letter "A": Neither Italy or New Zealand.
Explanation:
Comparative advantage is the ability of an individual or organization to manufacture its products at a lower opportunity cost than its competitors. The scenario does not imply the individual has an absolute advantage. It actually means it sacrifices less to achieve that goal.
Thus, <em>Portugal has a lower opportunity cost than Italy in producing a bottle of wine. Portugal's opportunity cost is 1/2 while Italy's opportunity cost is 2. Neither Italy or New Zealand (or any other country not mentioned in the example) has a comparative advantage in producing wine</em>.
Answer:
Explanation:
The most important reason for organizations to rely on research is that it ultimately provides the organization with insight on how a specific decision will perform in the target market and what effects it will have on the company. This is because research provides valuable information such as a target population's interests, hobbies, spending behaviors, needs, likes/dislikes, etc. All of which are factors that help determine if that population will buy a certain product and increase the organizations revenue.
