Answer:
c. 10%
Explanation:
Margin of safety is the sales value at which the business is safe from making loss. It measures the profit after the break-even point. The sales over the break-even point is considered as the margin of safety.
Margin of safety = Actual Sales - Break-even point = 12,500 units - 11,250 units = 1250 units
Percentage of margin of safety to sales = Margin of safety / Actual sales
Percentage of margin of safety to sales = 1,250 / 12,500
Percentage of margin of safety to sales = 0.10
Percentage of margin of safety to sales = 10%
Answer and Explanation:
The computation is shown below:
1. Before computing the stockholder equity first we have to determine the total assets and the total liabilities which is shown below:
As we know that
Total Assets = Current Assets + Net Fixed Assets
= $2,090 + $9,830
= $11,920
Now
Total Liabilities = Current Liabilities + Long-term Debt
= $1,710 + $4,520
= $6,230
So,
Stockholders’ Equity = Total Assets - Total Liabilities
= $11,920 - $6,230
= $5,690
2. The net working capital is
Net Working Capital = Current Assets - Current Liabilities
= $2,090 - $1,710
= $380
Answer:
He has no more right on the warranty.
Explanation:
Auto warranty is a promise made by the manufacturer to be responsible for certain faults and repairs over a given period of time . This period of warranty could also be specified through the mileage covered by the car . The expiration of the warranty is decided based on any of the set milestones, either in years / mileage that is first achieved.
In Mathew's case , Kim has already exhausted the warranty on the car as she has exceeded the 36,000 mile covered by warranty in a space of two years. You need to know that warranty expires the moment any of the set milestone is achieved.