ANSWER = b
Work = All you have to do is process of elimination to eliminate the ones that don’t make sense.
Correct answer choice is:
D. A reduction in the number of dresses available from the manufacturer.
Explanation:
As per the law of supply and demand, a product tends to experience a rise in costs if the availability is faded. When the availability is faded, the merchandise becomes a lot more limited and provides the vendor additional power to extend the worth if the purchasers wish to accumulate it.
Answer:
Retained earning balance at the end would be = $205,000
Explanation:
Retained earnings at the end = Retained earning at the beginning + Net income - Dividend paid
The net income would increase the balance of the retained earnings hence it is added to it.
The Dividend paid would be a cash outflow which would reduce the balance of the retained earnings, hence it is deducted from it.
So applying this to the question, we have
Retained earning balance at the end would be:
25,000 + 200,000 - 20,000 = $205,000
Retained earning balance at the end would be = $205,000
Answer:
d.the company is precisely breaking even.
Explanation:
Margin of safety is referred to current sales - Break even sales ratio to current sales as a percentage.
Basically it is quoted as follows:

Therefore, when the current sales = Break even sales then only the company will have margin of safety = 0
Thus, at 0 margin of safety the company basically is at no profit no loss situation, that is break even.
That is true, hope that helps !