1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mihalych1998 [28]
3 years ago
14

Mercantile corporation has sales of $2,000,000, variable costs of $1,100,000, and fixed costs of $750,000. mercantile's margin o

f safety ratio is
Business
2 answers:
snow_tiger [21]3 years ago
7 0

Answer:

margin of safety ratio is 7.5%

Explanation:

sales made/budgeted sales = $2000000

variable cost = $1100000

fixed costs = $750000

Total cost incurred = variable cost + fixed cost

                               = $1100000 + $750000

                               = $1850000

margin of safety = (sales made/budgeted sales) - (the break-even point)

Break-even point is the point where sales made is equal to total cost incurred

The break-even point is = $1850000 which is contained inside the sales made i.e the point where cost incurred meets sales made

while the margin of safety is = the sales made - the break even point

                                                = $2000000 - $1850000

                                                = $150000

Margin of safety ratio is calculated as = margin of safety / total sales * 100

the margin of safety ratio  = 150000/2000000 * 100

                                              = 0.075 * 100 = 7.5%

pogonyaev3 years ago
4 0
The break even point would be 1850000, and as Mercantile made 2000000, the margin of safety would be 150000.
You might be interested in
What are examples of cocurricular education? Check all that apply.
DENIUS [597]

a CTSO for students taking marketing classes

a club providing hands-on laboratory experience for students taking a science class

an agricultural organization for students in an agricultural school

4 0
3 years ago
Read 2 more answers
During a recession, what is one way governments try to encourage growth? by increasing unemployment benefits by stopping governm
storchak [24]
During a recession, the way that governments try to encourage growth is : increasing unemployment benefits

During a recession, a number of unemployment will rapidly increased ( almost a third of citizen could be jobless). In order to handle this, government could increase unemployment benefit so the unemployed people have enough to scrapped by until the recession is over or started a new business.
7 0
3 years ago
Read 2 more answers
The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactu
Sholpan [36]

Answer: A.exceed units sold

Explanation:

In Absorption Costing, All costs be it Fixed or Variable that are directly related to production are considered when computing the Cost of Production.

Under Variable Costs however, only variable Costs are considered for the computing of Cost of Production.

This difference in consideration of costs under each method leads to difference in income determination under each method.

Under Absorption Costing, fixed manufacturing costs are apportioned on produced units and the costs are only recovered when the units are sold but under variable costing, fixed manufacturing costs are treated as period costs and are therefore charged to the Income statement.

This means that, the amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured exceed units sold.

8 0
3 years ago
if an item of clothing costs a manufacturer R60 to make,how much profit was made per item if 10 items were sold for R1200​
postnew [5]

Answer:

600

Explanation:

60×10=600 (this is the cost)

1200-600=600

3 0
3 years ago
First, regardless of the strategy, _____ storage and _____ storage must be secured.
shepuryov [24]

Answer:

The correct answer is offsite and onsite.

Explanation:

When implementing Business Continuity the preservation of company data comes first.

Business Continuity Plan/Strategies are those measures that a company puts in place to ensure that regardless of the threat, and or disruption to the existing model that allows them to provide goods or services, (e.g. tsunamis or earthquakes, riots and civil unrests, compulsory government curfew) they can continue to function, reach their customers and remain operational.

The first rule of Business Continuity Plan is to protect all information assets. Off-site data or information refer to those information and or data that are remotely stored. That is, they are secured far away from the physical location of the business such as a data or server farm, cloud storage etc.

Onsite data storage refers to storing data on the premises or site of the business. Some fo the tools used are Hard Disk Drivers, Solid State Drives, DVDs etc.

Cheers!

3 0
3 years ago
Other questions:
  • A market order has: a. Price uncertainty but not execution uncertainty. b. Both price uncertainty and execution uncertainty. c.
    10·1 answer
  • When Home Depot entered the Quebec market in Canada, 2 percent of people were aware of the retail chain. To determine advertisin
    6·1 answer
  • Several employees are facing the possibility of being laid off from work. By concluding that they should look for new jobs
    14·1 answer
  • Management Theories, Inc. at a cash price of $1.5 million. Management Theories, Inc. has short-term liabilities of $500,000. As
    5·1 answer
  • The March 2011 announcement that AT&T was acquiring T-Mobile USA from Deutsche Telekom is a _________ acquisition and is int
    7·1 answer
  • You could borrow money from friends and family who would like to invest in your business, or you could offer them ________. equi
    10·1 answer
  • Units Unit Cost Inventory, Jan. 1 8,000 $11 Purchase, June 19 13,000 12 Purchase, Nov. 8 5,000 13 If 9,000 units are on hand at
    5·1 answer
  • A budget is used to do which of the following
    13·1 answer
  • The ____ is an organization that has developed resource documentation for CSPs and their staff. It provides guidance for privacy
    8·1 answer
  • Tyler is a recent college graduate that has a large private student loan debt. He is
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!