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posledela
3 years ago
6

Wang Co. manufactures and sells a single product that sells for $400 per unit; variable costs are $232 per unit. Annual fixed co

sts are $844,200. Current sales volume is $4,210,000. Compute the current margin of safety in dollars.
Business
1 answer:
gladu [14]3 years ago
6 0

Answer:

Margin of safety= $2,200,000

Explanation:

Giving the following information:

Selling price= $400 per unit

variable costs= $232 per unit.

Annual fixed costs= $844,200.

Current sales volume is $4,210,000.

First, we need to calculate the break-even point in dollars:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 844,200/ [(400 - 232)/400]

Break-even point (dollars)= $2,010,000

Now, we can calculate the margin of safety in dollars:

Margin of safety= (current sales level - break-even point)

Margin of safety= 4,210,000 - 2,010,000= $2,200,000

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Russell Company is a pesticide manufacturer. Its sales declined greatly this year due to the passage of legislation outlawing th
zloy xaker [14]

Answer:

1. The company's shareholders and management are the stakeholders in this circumstance.

2-a. The president's request is unethical.

2-b. Zoe's action is unethical.

3. It is possible for Zoe to accrue revenues and defer expenses while remaining ethical.

4. Again, it is possible for Zoe to accrue revenues and defer expenses while remaining ethical.

5. The person that can discover Zoe’s accrued revenues and deferred expenses is the auditor

Explanation:

1. Who are the stakeholders in this situation?

The company's shareholders and management are the stakeholders in this circumstance. The reason is that, in this circumstance, manipulating the company's profitability will have a direct impact on stock prices, which will affect the company's shareholders. The company's management is also a stakeholder in this scenario because they are involved in decision-making and make accounting-related choices and changes to the books of accounts. Lenders, employees, vendors, and lenders are secondary or non-primary stakeholders who will be impacted by the decision of the management to accrue as much revenue as feasible and defer every possible expenses.

2. What are the ethical considerations of (a) the president’s request and (b) Zoe dating the adjusting entries December 31?

2-a. The president's proposal goes against sound accounting practices. This will be interpreted as an attempt to window dress and manipulate accounting entries by the management in order to present a profit figure that is higher than reality. This is unethical behavior.

2-b. Zoe's decision to date the adjusting entries December 31 rather than January 17 was carried out with the explicit intention of distorting accounting figures, and inflating revenues by incorrectly accruing certain revenues and deflating expenses by incorrectly deferring some expenses. This is not only unethical, but also unlawful behavior.

3. Can Zoe accrue revenues, defer expenses, and still be ethical?

It is possible for Zoe to accrue revenues and defer expenses while remaining ethical if he does it in accordance with accounting principles and the GAAP and IFRS framework. It will not be ethical otherwise. When sales have occurred but have not been recorded through standard invoicing paperwork, it is legitimate to record them as accrued sales. However, declaring such transactions as accrued revenues will be unethical if buyers have paid in advance and items will be supplied next year.

4. Can Zoe’s accrued revenues and deferred expenses be illegal?

Again, it is possible for Zoe to accrue revenues and defer expenses while remaining ethical if he does it in accordance with accounting principles and the GAAP and IFRS framework, and if the federal and IRS regulations have not been breached. However, Zoe's behavior of accruing revenues and deferring expenses will be against the law if those modifications break accounting conventions and federal regulations.

5. Who do you think can discover Zoe’s accrued revenues and deferred expenses?

The person that can discover Zoe’s accrued revenues and deferred expenses is the auditor when he is reviewing the books of accounts of the company.

5 0
2 years ago
The ratio that measures a​ company's success in using its assets to earn income for the persons who finance the business is​ the
Verizon [17]
Your answer is a because I know this from school
7 0
3 years ago
Eliza has the opportunity to receive $15,000 in four years. Assume the annual interest rate is 10%, what is the present value?
KonstantinChe [14]

Answer:

$10,245.20

Explanation:

The present value by the Eliza shall be determined through below mentioned formula:

Present value=Future value(1+i)^-n

In the given question

Present value=?

Future value= Amount that the Eliza will receive after four years=$15,000

i=interest rate involved=10%

n=number of years after which the $15,000 will be received=4

Present value=$15,000(1+10%)^-4=$10,245.20

3 0
3 years ago
China decides to build an aircraft carrier. what is the opportunity cost of the aircraft carrier?
evablogger [386]

The opportunity cost of the aircraft carrier is the cost of the next best option China forgoes in order to build the aircraft carrier.

<h3>What is the opportunity cost?</h3>

Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives. Opportunity cost is also known as implicit cost. Opportunity cost is used in calculating implicit cost.

For example, if in deciding to build the aircraft carrier, China forgoes the opportunity to repair all the roads in china. Repairing all the roads in China is the opportunity cost.

To learn more about opportunity cost, please check: brainly.com/question/26315727

#SPJ1

5 0
2 years ago
Which classification system uses letters to classify library resources?
ziro4ka [17]
That would be the "library of congress" type of system
3 0
3 years ago
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