Answer:
25%
Explanation:
the margin of safety is the percent of sales which the company is above the break even point.
We solve for the break even point:
BEP = 150,000
We solve for the margin of safety:
$ 200,000 - $ 150,000 = $ 50,000
Now we compare against our sales:
$ 50,000 / $ 200,000 = 0.25
Answer:
The answer to this question is given below in this explanation section.
Explanation:
"is advertising a overhead or operating expense"
operating expenses and selling general and administrative expenses are both types of costs involved in running a company a significant in determining its financial well being.While generally synonymous,they each can be listed separately on the corporate income statement.
Operating expense are the costs involved in running the day to day operations of a company they typically make up the majority of a company expenses. OPEX are not include in costs of goods involved in the production of a company goods and services.cogs include direct labors direct materials or raw materials and overhead cost of production facility.cost of goods sold is typically listed as a separate line item on the income statement.
operating expenses are the remaining costs that are not includes in cogs.Operating expenses can include:
- Rent
- utilities
- salaries/wages
- property taxes
- Business travel
The price elasticity of baseball bats is −0.77, this indicates that the demand for bats tends to inelasticity. Therefore, if the manager wants to dispose of his inventory, he would advise you not to lower the price because it would cause a decrease in income. He could raise the price and earn more since being an inelastic demand, the quantity demanded would not be modified as much as the price would change.
Answer:
An entrepreneur wants to start a new business. Her most important priorities are having full control over her company and keeping all the profits for herself. Which type of business would best suit her needs?
---> Sole proprietorship
Explanation:
for who has this different question
Answer:
Net income will remain same.
Explanation:
Net income is no change in net income because the sales is increase as the price of decreased. Net impact is zero.
For Example:
Price = 100
Variable cost = 50
Flights = 100
Net income = (100-50) x 100 = $5,000
Revised Calculation
Price = 100 x 90% = $90
Variable cost = 50
Flights = 100 x 125% = 125
Net income = (90-50) x 125 = $5,000
There is no change in the net income.
