Answer:
Margin of safety = 3190.922902 units rounded off to 3191 units
Explanation:
Margin of safety is the cushion or extra number of units that the business sells over the break even point in units. The break even point is the point where total revenue equals total cost and the business earns no profit or no loss. To calculate the margin of safety in units, we deduct the break even number of units from the budgeted number of units or sales.
Margin of safety = Budgeted units - Break even number of units
First we need to calculate the break even in units. The formula for break even in units is,
Break even in units = Fixed cost / (Selling price per unit - Variable cost per unit)
Break even in units = 9376 / (6.74 - 2.33)
Break even in units = 2126.077098 rounded off to 2126 units
Margin of safety = 5317 - 2126.077098
Margin of safety = 3190.922902 units rounded off to 3191 units
Answers:
The correct answer is 1. a) is the initial plan of what the company intends to accomplish in the period and evolves from both the operating and financing decisions. 2. d. budgeted income statement.
Explanation:
To begin with, a budget is an estimate of the expected results of a specific area in a given period, mainly one year. For its part, the master budget is a plan that covers all areas of the company, and can be adjusted depending on the situations or events that influence the achievement of results. This tool allows a projection of the expected returns taking into account a previous base and the current situation of the sector in which it is located, which is why it is important because it allows drawing a road map for the benefit of all collaborators.
Answer:
Total variable cost= 90,000
Total fixed costs= 8,000
Total costs= $98,000
Explanation:
Giving the following information:
Production of 15,000 units:
Fixed costs= $8,000
Total variable cost= $75,000
We have no reason to believe that the fixed costs will change. If 18,000 units remain in the relevant range, the fixed costs are constant.
<u>We need to calculate the unitary variable cost:</u>
Unitary variable cost= 75,000/15,000= $5
Now, for 18,000 units:
Total variable cost= 5*18,000= 90,000
Total fixed costs= 8,000
Total costs= $98,000
Answer: 1/1.8
Explanation:
From the question, we are informed that 1 British pound can be exchanged for 180 cents of U.S. currency. To get the fraction that should be used to compute the indirect quotation of the exchange rate expressed in British pounds, we have to change the 180 cents to dollars first.
Since 100 cents = 1 dollar, 180 cents = 1.8 dollars. Therefore, fraction should be used to compute the indirect quotation of the exchange rate expressed in British pounds will be:
= 1/1.8
Answer:
a. The true cost of something in its cost of opportunity
Explanation:
Opportunity cost is the cost which is defined as the cost or expense of one item which is lost in order to get the opportunity to do or to consume something else. In simple words, it is the value or the cost of the next best available alternative.
So, when the person select to bought the textbooks through Chegg instead paying the higher price for the same books through the bookstore. Under this situation, the principle applies is the cost of something in its opportunity cost.
