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iVinArrow [24]
3 years ago
6

If the margin of safety for canace company was 20%, fixed costs were $1,875,000, and variable costs were 80% of sales, what was

the amount of actual sales (dollars)? (hint: de- termine the break-even in sales dollars f
Business
1 answer:
Paraphin [41]3 years ago
6 0

Calculation of amount of actual sales (dollars):

Step-1: Calculation of break-even in sales dollars:

Break-even in sales dollars = Fixed costs / (100%- Variable Cost %)

Break-even in sales dollars = 1875000 /(100%-80%)

Break-even in sales dollars = 1875000 /20%

Break-even in sales dollars = $9,375,000

Step-2: Calculation of actual sales:

Actual Sales = Break-even in sales dollars / (100% -Margin of safety %)

Actual Sales = 9375000 /(100%-20%)

Actual Sales = 9375000 /80%

Actual Sales = $11,718,750

Hence, the Amount of actual sales (dollars) is $11,718,750

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Specialization can help a country's economy by:*
Alika [10]

Answer:

D)reducing its need to be self-sufficient,

Explanation:

Specialisation by a country's economy means that it produces only the specialised goods & even export it, import the other goods.

It decreases opportunity costs, decreases cost of voluntary exchanges. Higher level of specialisation implies there is increased labor force division.

However, it reduces need of country to be self sufficient. As, it can gainfully trade its specialised goods for other goods (in which other economy specialises).

3 0
3 years ago
Read 2 more answers
Select all the choices that decision makers could use marginal analysis for to make effective decisions.
mylen [45]
<span>Adding a machine to the factory and producing another car would be the choices that decision makers could use marginal analysis to make effective decisions.</span>
7 0
2 years ago
Read 2 more answers
If you borrow $1500 with a compounding interest rate of 8% for 2 years, that compounds semi-annually. How much will you pay back
mestny [16]

Answer:

1740

Explanation:

1500(1+\frac{8}{100})^2

1500*(\frac{27}{25})^2

= 1749.6

4 0
2 years ago
A company issues $16200000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The
bekas [8.4K]

Answer:

The amount of interest expense which will be recognized in 2020 is $949,681.45.

Explanation:

The following are given in the question:

Bond value = $16200000

Bond interest rate = 5.8%

Proceed from bond = $15825541

Yield rate = 6%

The amount of interest expense which will be recognized in 2020 can now be calculated as follows:

Interest expense for January 1, 2020 to June 30, 2020 = Proceed from bond * Yield rate * (6 / 12) = $15825541 * 6% * (6 / 12) = $474,766.23

Discount amortized during first 6 months = Interest expense for January 1, 2020 to June 30, 2020 - (Bond value * Bond interest rate * (6 / 12)) = $474,766.23 - ($16200000 * 5.8% * (6 / 12)) = $474,766.23 - 469,800 = $4,966.23

Interest expense for July 1, 2020 to December 31, 2020 = (Proceed from bond + Discount amortized during first 6 months) * Yield rate * (6 / 12) = ($15825541 + $4,966.23) * 6% * (6 / 12) = $474,915.22

Interest expense to be recognized in 2020 = Interest expense for January 1, 2020 to June 30, 2020 + Interest expense for July 1, 2020 to December 31, 2020 = $474,766.23 + $474,915.22 = $949,681.45

Therefore, the amount of interest expense which will be recognized in 2020 is $949,681.45.

3 0
3 years ago
Which of the following is true?a. Anticipated inflation is an increase in the price level that comes as a surprise, at least to
prisoha [69]

Answer:Answer:

C) Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy

Explanation:

Inflation from definition: Inflation is the persistent rise in the general price of good and services. So one of the factors that can help anticipate and manage inflation is:

Money Supply and Inflation

The quantity theory of money means that as money supply is increases it will lead to increase in inflation. This is because of the correlation between money supply and inflation, illustrated in the equation MV=PT where V and T are autonomous of the Money Supply. Nevertheless, in practise empirical evidence has shown that increased money supply doesn’t certainly cause inflation, as there are other components differentiating money supply and inflation.

But the answer that decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy is because with the money slow level, they can anticipate and manage inflation

6 0
3 years ago
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