Answer:
B) $32,000
Explanation:
The computation of the margin of safety is shown below:
= Expected sales - break even sales
where,
Expected sales = $224,000
Break even sales is
= Fixed cost ÷ Contribution margin ratio
= $76,800 ÷ 40%
= $192,000
so, the margin of safety is
= $224,000 - $192,000
= $32,000
Hence, the correct option is b.
Answer:
1,875,000 Economic Value Added
Explanation:
Net Operating Profit After Taxes - Invested Capital x Weighted Average Cost of Capital = Economic Value added
This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.
3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes
18,000,000 x 5% = (900,000) Required Return
1,875,000 Economic Value Added
Answer:
This will create shortage and people will sell milk in black market at higher price.
Explanation:
Wildfires and mudslides have closed the highways. This created greater demand and short supply.
The equilibrium price increased to $7.
But the government imposed a price ceiling of $4.
At this binding price ceiling, the quantity demanded is more than quantity supplied.
This high demand would cause the suppliers to sell milk in the black market at a higher price.
Answer:
Term loan, which is defined by a specific amount, tenor (that may vary from 1-10 years) and a specified repayment schedule. These loans could be secured (usually for higher risk borrowers) or unsecured (for investment-grade borrowers), and are generally at floating rates.
Answer:
The answer is: B) social audit
Explanation:
By performing a social audit a company (You Design, We Build Company) can measure and understand its social and ethical performance. The goal of a social audit is to establish ways to improve the company´s social and ethical performance, usually affecting positively the company´s governance and its corporate image.