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Svetllana [295]
3 years ago
13

If the margin of safety is 0, then a.the margin of safety cannot be less than or equal to 0; it must be positive. b.the company

is operating at a loss. c.the company is earning a small profit. d.the company is precisely breaking even. e.the company's total variable costs are equal to its total fixed costs.
Business
1 answer:
sdas [7]3 years ago
3 0

Answer:

d.the company is precisely breaking even.

Explanation:

Margin of safety is referred to current sales - Break even sales ratio to current sales as a percentage.

Basically it is quoted as follows:

\frac{Current\ sales\ -\ Break-even\ Sales}{Current\ Sales} \times 100

Therefore, when the current sales = Break even sales then only the company will have margin of safety = 0

Thus, at 0 margin of safety the company basically is at no profit no loss situation, that is break even.

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Do all states pay the same unemployment compensation and for the same length of time?
kondaur [170]

Answer:

Explanation:

Ultimately, the onus is on the state government to balance the checkbook, so the state has to decide the benefits maximum amount, duration, and eligibility to receive the benefits. For this reason, you notice that unemployment benefits largely vary by state. Some states like Massachusetts could pay as high as $1,220 depending on the eligibility criteria.

4 0
3 years ago
A lottery winner can take $6 million now or be paid $600,000 at the end of each of the next 16 years. The winner calculates the
Semmy [17]

Answer:

Yes, her decision was correct because of Net present value rule.

Explanation:

the net present value (NPV) applies to a series of cash flows occurring at different times.

The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money. It provides a method for evaluating and comparing capital projects or financial products with cash flows spread over time, as in loans, investments, payouts from insurance contracts plus many other applications.

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5 0
3 years ago
Read 2 more answers
What type of firm helps consumers and businesses build
NISA [10]

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3 0
3 years ago
Which of the following clauses states that full payment of damages to structures under the homeowners policy will be made only i
Andrews [41]

Answer: coinsurance clause

Explanation:

A coinsurance clause is a provision in the home insurance policy which requires the individual to carry coverage that is worth a certain percentage of the home's value. The failure to meet requirement will reduces the compensation after a loss.

Under the coinsurance clause, the insurance company will reimburses the value of damages to an insured asset for at least 80% of the replacement value of the asset. The reinsurance clause allows an insurer to take the reinsurance based on the original insurance.

3 0
3 years ago
Piedmont Hotels is an all-equity company. Its stock has a beta of .87. The market risk premium is 7.4 percent and the risk-free
vovikov84 [41]

Answer:

12.64%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4% + 0.87 × 7.4%

= 4% + 6.438%

= 10.438%

The Market rate of return - Risk-free rate of return)  is also known as the market risk premium and the same is applied.

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= 10.438% + 2.2%

= 12.64%

7 0
3 years ago
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