1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elis [28]
3 years ago
13

Zhao Co. has fixed costs of $429,000. Its single product sells for $187 per unit, and variable costs are $122 per unit. If the c

ompany
expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales.
Dollars
Percent
Margin of safety
Business
1 answer:
otez555 [7]3 years ago
4 0

Answer:

$635,000 and : 34%

Explanation:

Margins of safety is the difference between expected sales and the break-even point.

For Zhao, expected sales are 10,000 units

The break-even points in units = fixed cost/ contribution margin per unit

fixed costs = $429,000

Contribution margin per unit = selling price - variable costs per unit

=$187 -  $122

=$65

break-even point in units = $429,000/$65

break-even point = 6600 units

Margin of safety = 10,000 - 6600 units

=3400 units

In dollars is equal to margin of safety in units x selling price

=3400 x 187

<u>=$635,000</u>

as a percent of expected sales.

=3400/10000 x 100

=0.34 x 10,000

=34%

You might be interested in
Statement Of Owner's Equity Jay Pembroke started a business in April. Prepare a Statement of Owner's Equity using the following
Dovator [93]

Answer:

$2,433

Explanation:

Net Income = Sales - Expenses

where,

Sales = $3,033

and

Expenses = $600

therefore,

Net Income = $3,033 - $600 = $2,433

3 0
3 years ago
Do you think percentage gains
Anni [7]
I think more varied if you added additional mutual funds you would have a more diverse portfolio.
8 0
3 years ago
Read 2 more answers
The most difficult aspect of coordinating a complex project is: a. determining appropriate costs and budget allocations for grou
Margarita [4]

Answer:

The correct answer is the option C: political disputes between managers involved in the project.

Explanation:

In the situation where a person must coordinate a complex project might struggle with the fact that sometimes differences in political opinions and ideas may occur when more than one manager is in charge of the project. Moreover, in that situation, it is very difficult to agree with the other person and even more if that person has resources that must be used in the project and therefore that person has some power in its hands. In addition, the other factors, such as coordinating the elements or determining the budgets and the needed skill sets of project workers will not have a great impact in the complexity of the project if there are not political differences because in that case all the managers will agree in a way of doing things and they will encourage every employee to do it at once.

6 0
3 years ago
The revenues and expenses of Sunset Travel Service for the year ended April 30, 2014,
padilas [110]

Answer:

Net profit= $491,000

Explanation:

An income statement is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period. The income statement focuses on the four key items - revenue, expenses, gains, and losses. It does not cover receipts (money received by the business) or the cash payments/disbursements (money paid by the business).

It follows the general structures:

Revenues (+)

Operating Revenue

Non-Operating Revenue

Total

Expenses (-)

Primary Activity Expenses

Secondary Activity Expenses

Total

Gains (+)

Losses (-)

Net income/loss

In this exercise:

Total revenues=$1,673,000

Expenses:

Office expense 488,000

Miscellaneous expense 34,000

IWages expense 660,000

Total Expenses=$1,182,000

Net profit= $491,000

5 0
3 years ago
Which organization does not work for consumers
Dvinal [7]

Answer:

Which organization does not work for consumers

Federal treasury

Explanation:

The other three are consumer-focused.  But the Federal Treasury is a US government agency that advises government on fiscal matters.  It performs some law enforcement activities to help government enforce laws on fiscal policies.  It is also responsible for manufacturing the currency and postage stamps.  Finally, it has responsibility for the supervision of national banks in the United States.

3 0
3 years ago
Other questions:
  • Which job would require a license or certification? ambassador lobbyist high school teacher state senator
    13·2 answers
  • What was the nickname of the person who replaced Don Meredith during the 1974 pre-season?
    13·2 answers
  • Nick, a skilled welder, had been working for 12 years in a factory that recently closed. This has caused high unemployment in hi
    14·1 answer
  • On January 1, Bramble Corp. has a beginning cash balance of $42000. During the year, the company expects cash disbursements of $
    12·1 answer
  • Can be defined technically as a set of interrelated components that collect, process, store, and distribute information to suppo
    13·1 answer
  • Which step of formulating a financial budget involves using forecasting techniques to help predict revenue?
    5·1 answer
  • What are the advantages and disadvantages of the three primary business writing formats?
    11·2 answers
  • On December 31 of the current year, Jerome Company has an accounts receivable balance of $329,000 before any year-end adjustment
    12·1 answer
  • If a nation has a comparative disadvantage in the production of some commodity: Group of answer choices it cannot gain from inte
    10·1 answer
  • In what career cluster would you find all levels of business jobs, such as an Administrative Assistant?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!