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barxatty [35]
2 years ago
13

Required information The Foundational 15 [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8] [The following information applies to

the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 Foundational 5-11 11. What is the margin of safety in dollars
Business
1 answer:
Romashka-Z-Leto [24]2 years ago
5 0

Answer:

$5,000

Explanation:

Sales $20,000

Variable expenses $12,000

Contribution margin $8,000

Fixed expenses $6,000

Net operating income $2,000

margin of safety in $ = current sales level - break even point

margin of safety in % = (current sales level - break even point) / current sales level

first we need to calculate the contribution margin per unit = $20 - $12 = $8 per unit

break even point = fixed costs / contribution margin = $6,000 / $8 = 750 units

sales level at break even point = 750 x $20 = $15,000

margin of safety in $ = $20,000 - $15,000 = $5,000

margin of safety = ($20,000 - $15,000) / $20,000 = $5,000 / $20,000 = 25%

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Answer:

$163,100

Explanation:

First find the present value of cashflows at year 1 and 2

<u>PV of  $82,400;</u>

PV = FV/(1+r)^n

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PV = $73082.0399

<u>PV of  $148,600;</u>

PV = FV/(1+r)^n

PV = 148,600 /(1.1275)^2

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From the cumulative present value of 303,764.34, find the balance after deducting the above PVs;

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Year 3 cashflow = 113790.053(1.1275)^3

Year 3 cashflow = $163,099.996

Expected cashflow in third year is approximately $163,100

3 0
3 years ago
It is estimated that the average cost of an outbound telemarketing sales calls on a business customer is about __________, versu
4vir4ik [10]

Answer:

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Telemarketing sales calls offers lots of advantages like boosting sales in most organizations. You will have to sign a contract where you agree to pay for a minimum number of hours.

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3 years ago
Watauga Company purchased equipment on July 1, 2017 for $70,000. Sales tax on the purchase was $700. Other costs incurred were f
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Answer:

$72,700

Explanation:

Data provided in the question:

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3 years ago
A demand function for step stools manufactured by U-Step is q = -720p + 20,500.
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$140,420

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The price is $17

q = -720 ($17) + 20500 = 8260

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3 years ago
Suppose that the following group of values has been entered into the TVM
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We have 12 months yearly in all of these 9 years.

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