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nataly862011 [7]
3 years ago
13

Margin of Safety The Ira Company has sales of $800,000, and the break-even point in sales dollars is $664,000. Determine the Ira

company's margin of safety as a percent of current sales. %
Business
1 answer:
attashe74 [19]3 years ago
7 0

Answer:

17%

Explanation:

Margin of safety = (sales - sales at break-even point ) / sales × 100 = $ 800 000 - $ 664 000 / $ 800 000 × 100  = 17%

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Suppose that the market price of Company A is $50 per share and that of Company B is $20. If A offers half a share of common sto
liubo4ka [24]

Answer:

D) +25%.

Explanation:

If A offers 1/2 a share per 1 share of B, it means that the value of B's shares will increase from $20 to $25 (= $50 x 1/2). This $5 increase represents a 25% increase in wealth {= [($25 - $20) / $20] x 100}.

The price of the stock represents the wealth of the stockholders, since a stockholder that had 100 shares previously owned $2,000 in stocks, but as the price increases, the stockholder's wealth increases to $2,500.

3 0
3 years ago
a sophisticated blank test might involve manipulating an advertising variable like schedule or copy through cable systems, and o
erma4kov [3.2K]

A sophisticated  sales test might involve manipulating an advertising variable like schedule or copy through cable systems, and observing the affects on purchasing at local supermarkets.

What is advertising variable?

  • Although advertising expenditures can change greatly, they are not regarded as variable costs.
  • Instead, marketing costs are fixed, meaning they don't change based on how many goods or services you offer to customers.

Why is marketing considered a variable cost?

  • Businesses may set aside a specific amount for advertising within their fixed marketing budget, despite having a fixed budget for marketing.
  • Advertising is therefore a current expense rather than a fixed one. Therefore, whether it be print or online, businesses must spend money on advertising.

Learn more about advertising a variable cost

brainly.com/question/24134182

#SPJ4

3 0
1 year ago
Over the first four years of the company's life, the company earned the following net income (loss): S $3,000; $6,000, and ($2,0
Klio2033 [76]

Answer:

The answer is D.

Explanation:

Total earnings in 4 years

= 6000 + 3000 + 6000 - 2000

= $13,000

Ending retained earnings after 4 years

= $10,000

Total amount paid out as dividend in 4 years

= $13,000 - 10,000

= $3,000

Average amount of dividends paid per year

= $3,000/4

= $750

5 0
3 years ago
Kingbird Inc. owns equipment that cost $672,000 and has accumulated depreciation of $174,000. The expected future net cash flows
aev [14]

Answer:

Explanation:

In this scenario, we compare the values between book value and the fair value of equipment, the difference would be the loss on impairment of the asset

In mathematically,  

= Book value - fair value

where,

Book value = Equipment cost - accumulated depreciation

                   = $672,000 - $174,000

                   = $498,000

And, the fair value is $384,000

Now put these values to the above formula  

So, the value would equal to

= $498,000 - $384,00

= $114,000

Now the journal entry would be

Loss on impairment A/c Dr $114,000

      To Accumulated depreciation A/c $114,000

(Being the impairment loss is recorded)

4 0
3 years ago
Beale Manufacturing Company has a beta of 1.8, and Foley Industries has a beta of 0.80. The required return on an index fund tha
navik [9.2K]

Answer:

3.5%

Explanation:

We will apply asset pricing model to calculate cost of equity (required rate of return). The capital asset pricing model is stated as below:

Cost of equity = Risk-free rate + Beta x Market risk premium

Putting all the number together, we have:                          

Cost of equity (Beale) = 5.5% + 1.8 x (9% - 5.5%) = 11.8%

Cost of equity (Foley) = 5.5% + 0.8 x (9% - 5.5%) = 8.3%

Cost of equity (Beale) - Cost of equity (Foley) = 11.8% - 8.3% = 3.5%

<em />

<em>Note: You can also do quick calculation as below:</em>

<em>Cost of equity (Beale) - Cost of equity (Foley) = (Beta of Beale - Bete of Foley) x Market risk premium = (1.8 - 0.8) x (9% - 5.5%) = 3.5%</em>

6 0
3 years ago
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