Answer:
"found in the JetBlue discussion throughout the chapter."
Explanation:
if I had to take a guess his question can not be awnsered correctly until more information is provided
Answer:
$635,000 and : 34%
Explanation:
Margins of safety is the difference between expected sales and the break-even point.
For Zhao, expected sales are 10,000 units
The break-even points in units = fixed cost/ contribution margin per unit
fixed costs = $429,000
Contribution margin per unit = selling price - variable costs per unit
=$187 - $122
=$65
break-even point in units = $429,000/$65
break-even point = 6600 units
Margin of safety = 10,000 - 6600 units
=3400 units
In dollars is equal to margin of safety in units x selling price
=3400 x 187
<u>=$635,000</u>
as a percent of expected sales.
=3400/10000 x 100
=0.34 x 10,000
=34%
Answer:
Option B is correct ( Will any of the fixed costs go away? If yes, ignore them in the decision process)
Explanation:
Answer:
$ 175,900.00
Explanation:
Yearly preferred stock dividends=number of preferred shares*dividend percentage*par value
yearly preferred stock dividends=77,000*5%*$10=$ 38,500.00
Since preferred stock is cumulative it implies that dividends in arrears for last year must be paid alongside this year dividends
dividends to preferred stock=$ 38,500*2=$77,000.00
common stockholders' dividends=total dividends-preferred stock dividends=$252,900-$77,000=$ 175,900.00
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