The manager at Tom's Taxidermy expects to sell 900 units at $80 each unit. In order for the manager to breakeven, the manager must sell 100 units. What is the margin of safety in dollars?
Answer:
$64,000
Explanation:
Given that, the margin of safety is a term that describes the disparity between the actual sales volume and the breakeven volume.
In this case, Tom's Taxidermy expects to sell 9,00 units at $80 each and their breakeven volume is 100 units, the margin of sales, in dollars, is:
MS = ( 900 - 100) * $80
MS = 800 * $80
= $64,000
Therefore, the right answer as Margin of Safety in dollars = $64,000
It’s C I believe :) I hope this helps you
Answer:
Is this the answer. It may can help you
The reliability rating of the cloud service is about <span>93.37%.</span>
Answer:
The portfolio beta is 1.08
Explanation:
The portfolio beta is the function of the weighted average of the individual stock betas that form up the portfolio. The weighatge is assigned to the stocks based on the investment in the stock as a proportion of the total investment in the portfolio. Thus, the portfolio beta is,
The investment in Con Edison = 45000 - 21200 - 10000 = $13800
Portfolio beta = 21200/45000 * 1.3 + 10000/45000 * 1 + 13800/45000 * 0.8
Portfolio beta = 1.08
