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lakkis [162]
3 years ago
14

Owen Company makes a product that sells for $61 per unit. The company pays $37 per unit for the varlable costs of the product an

d incurs annual fixed costs of $360,000. Owen expects to sell 20,000 units of product Required Determine Owen's margin of safety expressed as a percentage
Business
1 answer:
DerKrebs [107]3 years ago
7 0

Answer:

25%

Explanation:

the formula for the margin of safety is as follows

margin = current sales level -breakeven point/ current sales level x 100

expected sales unit = 20,000 units

the break-even point is fixed costs/contribution margin

fixed costs= $360,000

contribution margin = sales price- variable costs

=61-37

=24

breakeven point = $360,000/ 24

=15000

the margin of safety =  20,000-15,000/20,000 x 100

=5000/20000 x 100

=25%

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Which of the following are true if you pay only the minimum amount each month towards your credit card bill?a. You will be charg
BigorU [14]

Answer:

The correct answer is A and C as both are true statement.

Explanation:

Credit Card is a facility which is offered by banks to borrow money and it could be used by the borrower for buying expensive goods and the services up front. It has a time period, in which the borrower need to make payment for the amount used by the borrower along with the interest charged.

So, if the borrower paid the minimum amount towards the credit card, then the borrower is still in debt until clears or paid the whole amount and also will be charged the interest against the remaining balance or amount.

4 0
3 years ago
Sport entertainment includes a variety of jobs and segments of the industry. Which of the following is a job type associated wit
Feliz [49]

Answer:

D) Event management, is the correct answer.

Explanation:

The sports events generates lots of income both for the sports organization and hotels, airports near the sporting event. Although the event appears to be fun it requires loads of hard work to organize big sporting events. The sporting event organizers make these events successful and plan every detail into preparing the team and facility for the game. Sporting event planners work at different levels of from college games to professional matches.

6 0
3 years ago
One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm is that in th
scoray [572]
A. The size of the factory is fixed.

We know there will always be costs of rent and etc when running a business so even in the short run there is fixed costs. The output is always variable depending on the number of workers. The number of workers is also not fixed, but the size of the factory is because you cant just get up and move your business over night, it costs money and is a lot of work.  
8 0
3 years ago
Alabaster Incorporated wants to be levered at a debt to value ratio of .6 . The cost of debt is 9%. the tax rate is 35% and the
Aleks [24]

Answer:

14.925%

Explanation:

Cost of equity = Unlevered Cost of Equity + (Unlevered Cost of Equity - Cost of debt)*Debt to value ratio / (1-debt to value ratio)*(1-Tax rate)

Cost of equity = 12% + (12%-9%)*0.6/(1 - 0.6)*(1 - 35%)

Cost of equity = 0.12 + 0.018/0.4*0.65

Cost of equity = 0.12 + 0.02925

Cost of equity = 0.14925

Cost of equity = 14.925%

So, Alabaster's cost of equity will be 14.925%.

4 0
3 years ago
The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the re
almond37 [142]

Answer:

b. No - the increase in lease expense is a fixed cost.

Explanation:

If the owner of Italian restaurant increases the prices of its product it will result in low customers as the restaurant is already at the competitive price among its other competitors. If the restaurant raises prices the customers will move to the competitors which are offering same quality product at reduced price. The rent is increased by 20% which is considered as a fixed cost because it does not affect the per unit production and is not associated with the numbers of customers.

6 0
3 years ago
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