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Cloud [144]
3 years ago
6

has a monthly target operating income of $ 15 comma 000. Variable expenses are 70​% of​ sales, and monthly fixed expenses are $

12 comma 000. Read the requirementsLOADING.... Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. ▼ - = Margin of safety in dollars
Business
1 answer:
seraphim [82]3 years ago
7 0

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%

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andreyandreev [35.5K]

At December 31, bright should record interest revenue of $100. Money gained by lending money or money acquired from depositing or investing can both be referred to as interest revenue.

Is interest revenue a liability or an asset?

If a company anticipates receiving the interest payment within the year, it typically records the interest receivable as a current asset on its balance sheet. Companies that collect interest from loans view this revenue as a significant source of income that belongs at the top of the income statement. It is the price of taking out a loan from a bank, financial institution, bond buyer, or another lender. In order to assist a business finance its operations, such as the acquisition of rival businesses or machinery, plant, and property, interest expense is incurred.

To learn more about interest revenue, refer to:

brainly.com/question/27992328

3 0
1 year ago
_______ measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it.
Anastasy [175]

Answer:

Brand Awareness

Explanation:

Brand Awareness measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it. Brand awareness is further consisted of 2 elements:

1: Brand Recognition: is the ability of consumers to confirm previous exposures to brand when they are presented the brand as a cue. For example, if you go to a store, will you be able to recognize the brand to which you have been already exposed?

2: Brand Recall: It is the consumers ability to retrieve the brand from their memory if they are given product category or usage occasion as a cue. For example, when you think of carbonated drink, then what brand comes into your mind?

3 0
3 years ago
When the company pays rent expense for the current month, what is the effect on the accounting equation for that company?
GREYUIT [131]

Answer:

decrease the stockholder equity and decrease in assets

Explanation:

As we know, the accounting equation is  

Total assets = Total liabilities + stockholder equity

In the given case,  

The rent is paid for the current month, so the journal entry would be

Rent expense A/c Dr XXXXX

    To Cash A/c XXXXX

(Being rent is paid)

So it decreases the stockholder equity as it includes the income and expenses part and it decreases in assets as it reduces the cash balance

3 0
3 years ago
Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they
nata0808 [166]

Answer:

The following summarizes the solution to the given problem.

Explanation:

The given values are:

Sales,

= $660,000

Expenses,

= $255,453

Received cash revenues,

= $605,934

(a)

According to the accrual, profits would be acknowledged and therefore not necessarily received on the occasion of purchase.

⇒ Net \ income=Sales-Expense

On substituting the given values, we get

⇒                     =660,000-255,453

⇒                     =404,547 ($)

(b)

⇒ Net \ Income =Received \ cash \ revenues-Expenses

On substituting the given values, we get

⇒                     =605,934-255,453

⇒                     =350,481 ($)

(c)

  • The reliable financial foundation again for a financial consultant is more helpful because it demonstrates or represents the organization's appropriate financial status.
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5 0
3 years ago
A firm that uses ___________ segmentation divides a market into groups based on life stage, race, or profession.
Triss [41]

Answer:

Demographic

Explanation:

Demographic segmentation is often used in marketing to group customers according to demographic factors. The demographic factors include- age, gender, occupation, race, religion and income.

Other forms of segmentation includes :

1. Behavioural segmentation

2. Geographic segmentation

3. Psychographic segmentation

I hope my answer helps you

7 0
3 years ago
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