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Artist 52 [7]
3 years ago
9

The Dean Company has sales of $500,000, and the break-even point in sales dollars of $300,000. What is the company’s margin of s

afety percentage? _________________________
Business
1 answer:
postnew [5]3 years ago
4 0

Answer:

40%

Explanation:

The Dean company have a sales of $500,000

The break-even point in sales dollar is $300,000

Therefore, the company's margin of safety can be calculated as follows

Margin of safety= Sales-break-even sales/sales

= $500,000-$300,000/$500,000

= $200,000/$500,000

= 0.4×100

= 40%

Hencethe company's margin of safety percentage is 40%

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What are the cons of using new residential sales/new home sales as a economic indicator?
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Answer:

New home sales and existing home sales are released each month at about the same time. Many comparisons are made between the two series, but before doing any comparisons, one must be aware of some definition differences that affect the timing of the statistics.

The Census Bureau collects new home sales based upon the following definition: "A sale of the new house occurs with the signing of a sales contract or the acceptance of a deposit." The house can be in any stage of construction: not yet started, under construction, or already completed. Typically about 25% of the houses are sold at the time of completion. The remaining 75% are evenly split between those not yet started and those under construction.

Existing home sales data are provided by the National Association of Realtors®. According to them, "the majority of transactions are reported when the sales contract is closed." Most transactions usually involve a mortgage which takes 30-60 days to close. Therefore an existing home sale (closing) most likely involves a sales contract that was signed a month or two prior.

Given the difference in definition, new home sales usually lead existing home sales regarding changes in the residential sales market by a month or two. For example, an existing home sale in January, was probably signed 30 to 45 days earlier which would have been in November or December. This is based on the usual time it takes to obtain and close a mortgage.

Effective with January 2005, the National Association of Realtors created a new monthly series to overcome the lagging effect of the existing home sales definition. This new series is called Pending Home Sales and is based on sales of existing homes where the contract has been signed but the transaction has not been closed, making it roughly equivalent to the new home sales definition. Monthly estimates are expressed as an index where the year 2001 has been set to equal 100.0.

Explanation:

8 0
3 years ago
The value of what must be foregone in order to undertake an activity is known as Multiple choice question. opportunity cost. a t
Marianna [84]

In business, people often make choices. Opportunity Cost is the value of what must be foregone in order to undertake an activity.

<h3>What is opportunity cost?</h3>
  • The economists often refer to this type of cost as the amount or the value of the next highly rated alternative use of one's money or resource.

An example is when a person spend their time and money going to a shop, one cannot spend that time at cooking, and you even did not spend the money on other things.

Learn more about Opportunity Cost from

brainly.com/question/1549591

8 0
2 years ago
Beth is a retired teacher who lives in dallas and does some consulting work for extra cash. at a wage of $40 per hour, she is wi
Ipatiy [6.2K]
Price Elasticity of Supply. The price elasticity of supply is calculated as the percentage change in quantity divided by the percentage change in price.
 Using the Midpoint Method
 PES = ((Q2-Q1) / ((Q2 + Q1) / 2)) / ((P2-P1) / ((P2 + P1) / 2))
 PES = (((10) - (7)) / (((10) + (7)) / 2)) / (((50) - (40)) / (((50) + (40)) / 2))
 PES = 1.59
 the elasticity of beth's labor supply between the wages of $ 40 and $ 50 per hour is approximately 1.59
 In this case, to 1% rise in price causes an increase in quantity supplied of 1.59%
 answer:
 the elasticity of beth's labor supply between the wages of $ 40 and $ 50 per hour is approximately 1.59
 In this case, to 1% rise in price causes an increase in quantity supplied of 1.59%
4 0
3 years ago
Consider the three theories of the upward slope of the short-run aggregate-supply curve. According to the sticky-wage theory, th
mrs_skeptik [129]

Answer:

According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too high, thus labor demand is too low.

According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly.

According to the misperceptions theory, the economy is in a recession when the price level is below what is expected.

Explanation:

The above mentioned are the three theories of the upward slope of the short-run aggregate-supply curve.

7 0
3 years ago
if the interest rate on a savings account is 0.018%, approximately how much money do you need to keep in this account for 1 year
scZoUnD [109]
A = $9.99, the amount needed after 1 year 
r = 0.018% = 0.00018, interest rate
n = 12, compoundings per year
t = 1, one year duration

Let P =  required balance at the beginning of the year.
Then
P(1+ \frac{r}{n} )^{nt} = A
P(1 + 0.00018/12)¹² = 9.99
1.00018P = 9.99
P = $9.988 ≈ $9.99

Answer: $9.99

7 0
3 years ago
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