Answer:Margin of safety expressed in dollars=$88,000
Margin of safety as a percentage of sales =22%
Explanation:
Margin of Safety is the sales greater the break-even point that helps businesses gauge and prevent a loss. A Higher Margin of Safety is preferred as it limits the risk of businesses making loss
Margin of safety expressed in dollars= Total actual sales - break-even point of sales
$400,000 - $312,000
=$88,000
Margin of safety as a percentage of sales =Margin of safety/ Actual sales x 100
$88,000/ $400,000 x 100
0.22 x 100
= 22%
Answer:
Mace's average collection period is 88 days
Explanation:
Credit terms is "Net 60" which means the customer will naturally pay within 60 days. Further it is given that account average 28 days overdue. This means it takes 28 more days to collect the amount of receivables. Therefore the average collection period comes to
60 + 28 = 88 days.
Answer: A news release.
Explanation:
Bayer pharmaceutical has issued a news release to members of the business press.
A news release is a form of information issued by a company to media outlets, informing the public through the news outlets of changes in the company.
Answer:
c. $336.54 million
Explanation:
For computing the increase in sales, first we have to determine the full capacity of sales value which is shown below:
= Sales ÷ capacity percentage given
= $625 million ÷ 65%
= $961.54 million
So, the increase in sales would be
= Full capacity sales - given sales
= $961.54 million - $625 million
= $336.54 million
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