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Korvikt [17]
3 years ago
11

The following monthly data are available for Seasons Company which produces only one product: Selling price per unit, $42; Unit

variable expenses, $14; Total fixed expenses, $42,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June?
Business
1 answer:
dybincka [34]3 years ago
4 0

Answer:

The margin of safety for june is 2500 units.

Explanation:

The margin of safety is the additional units sold by a firm over its break even point.

The break even point is the point where the firm is making no profit or no loss.

To calculate the margin of safety, we first need to find out the break even point in units.

Break even in units = Fixed costs / contribution per unit

Where, contribution per unit = Selling price per unit - Variable cost per unit

So,

Break even in units = 42000 / (42 - 14) = 1500 units

The margin of safety is = 4000 - 1500 = 2500 units

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The additional dining space will occupy space next to Olaf’s that was recently rented to a tenant. By claiming the space for the
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Answer:

$12,146

Explanation:

The computation of present value of this opportunity cost is shown below:-

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= $1,000 × 30%

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= 48 Months

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= 0.75%

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= $300 × ( 1 + 39.486)

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= $12,146

3 0
3 years ago
A project will produce an operating cash flow of $136,000 a year for three years. The initial cash outlay for equipment will be
pashok25 [27]

Answer:

     NPV  =$ 60,311.80

Explanation:

<em>The net present value (NPV) of a project is the present value of cash inflow  less the present value of cash outflow of the project.</em>

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

                                                  0                  1                   2                 3          

Operating cash flow                                136,000     136,000    136,000

Initial cost                              (274,000)

Working capital                     (61,000 )                                          61,000

Salvage value                        <u>               </u>    <u>             </u>      <u>           </u>      1<u>5000  </u>              

Net cashflow                     <u> (335,000)  136,000      136,000      212,000.</u>

PV  inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)

       =  395,311.80

NPV =395,311.80 -335,000

       =$ 60,311.80

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3 years ago
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One of the differences in accounting for a process costing system compared to a job order system is that the amounts used to tra
AlekseyPX

Answer:

The correct answer is letter "A": true.

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