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3 years ago

A margin of safety of 30% means that every dollar in revenue generated thirty cents in profit.

Business

1 answer:

ElenaW [278]3 years ago

7 0

Answer:

B) False

Explanation:

Margin of safety measures the percentage difference between actual sales and break even sales.

Margin of safety acts like a buffer zone that the Company can lose before it stops making profits.

Margin of safety is calculated as follows:

Margin of Safety = (Current sales - break even sales) / Current sales

30% margin of safety indicates that the Company can bear to lose 30% of its sales before it reaches to break even level.

Net profit margin of 30% shows that every dollar of sales earns 30 cents in profit.

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A trip arranged by a travel professional that has at least two travel components is called _____.

enyata [817]

I believe you answer would be

adventure travel

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3 years ago

Read 2 more answers

average cost retail method to estimate inventories. Data for the first six months of 2021 include: beginning inventory at cost a

scoray [572]

Answer:

$70,765

Explanation:

cost retail

beginning inventory $64,500 $123,000 52.44%

net purchases $315,000 $483,000 65.22%

sales during the first six months totaled $493,000.

we must first determine the cost of goods sold:

COGS = [(cost beginning inventory + cost net purchases) / (retail beginning inventory + retail net purchases)] x total sales = [($64,500 + $315,000) / ($123,000 + $483,000)] x $493,000 = ($379,500 / $606,000) x $493,000 = $308,735

ending inventory = cost beginning inventory + cost net purchases - COGS = $64,500 + $315,000 - $308,735 = $70,765

8 0

4 years ago

g A company is evaluating a project requiring an initial cash outflow of $2 million. The investment will generate cash flows for

QveST [7]

Answer:

Explanation:

NPV of first option = - 2 + 1 / 1.1 + 1 / 1.1² + 1 / 1.1³ + 1 / 1.1⁴ + 1 / 1.1⁵

= -2 + .909 + .826+ .751+.683+ .620 = $1.789

NPV of the second option :--

NPV when annual cash flow is 1.5 million

-2 / 1.1 + 1.5 /1.1² + 1.5/1.1³ + 1.5 / 1.1⁴ + 1.5 / 1.1⁵ + 1.5 / 1.1⁶

= -1.818 + 1.239 + 1.127+1.024+.931+.846

= -1.818 + 5.167

= 3.349

NPV when annual cash flow is 0.5 million

-2 / 1.1 + .5 /1.1² + .5/1.1³ + .5 / 1.1⁴ + .5 / 1.1⁵ + .5 / 1.1⁶

= - 1.818 + 1.722 = $ -0 .096

NPV = .65 x 3.349 - .35 x .096

= 2.177 - .0336

= $2.1434

value of option wait = $2.1434 - $1.789

= $ 0.3544

5 0

3 years ago

Bob Knox is paid on a piece-rate basis. He is paid 30 cents for each unit he produces. For overtime work, he receives in additio

Tresset [83]

Answer:

Bob Knox will be paid $598.5 for 45 hours worked.

Carson Morris will be paid gross pay $903.1 for 50 hours worked.

Explanation:

Bob Knox is paid on piece-rate basis, which means he will be paid based on the units he produced. To calculate his pay

1,890 units × $0.3 = $567

$567 ÷ 45 hours worked = $12.6 per hour

To calculate his overtime pay we multiply by 0.5 because he is paid one half of regular pay as overtime.

$12.6 per hour × 0.5 = $6.3 per hour

$6.3 per hour × 5 hours overtime = $31.5

$31.5 + $567 = $598.5.

Carson Morris is paid average rate basis for overtime. His pay will be calculated as follows,

( 36 hours × $16.00 per hour) + (14 hours × $17.50 per hour ) = $821 for (36 + 14) 50 hours.

$821 ÷ 50 hours = $16.42 per hour

$16.42 × 0.5 = $8.21 per hour

$8.21 per hour × 10 hours overtime = $82.10

=$82.1 + $821 = $903.1

3 0

4 years ago

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then p

lesantik [10]

Answer:

a. rises but real GDP per person falls

Explanation:

Gross domestic product is the total monetary value of output that is produced by an economy in a given period.

GDP increases as the income increases. This is because people have more money to spend on goods and services.

So if people are retiring they will earn pension that will be spent. This increases productivity of the economy.

However since the number of people working is reducing there will be a reduction in real GDP per person. Only few people are producing and output will be allocated to a large population many of whom are not working.

6 0

4 years ago