Ask question

Ask question

All categories

3 years ago

14

If a business had a capacity of $10,000,000 of sales, actual sales of $6,000,000, break-even sales of $4,500,000, fixed costs of

$1,800,000, and variable costs of 60% of sales, what is the margin of safety expressed as a percentage of sales

1 answer:

FrozenT [24]3 years ago

5 0

Answer:

2000000

Explanation:

because that is what is left

You might be interested in

Which of the following statements is true?

Ivan

Answer:

Statement b. is True

Explanation:

When using variable costing method, all the costs which are variable in nature is charged based on per unit basis and is not periodic in nature, as depends o quantum of production and sales.

While considering fixed cost, it is considered periodic in nature as this does not depend on quantum of production or quantum of sales, as this is fixed in terms for a period it is periodic in nature, and is treated unavoidable even at a level where no units are produced.

Thus, Statement b. is True.

7 0

4 years ago

You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a ve

soldi70 [24.7K]

Answer:

A.You should go home and watch TV.

Explanation:

You should go home and watch TV because it is the activity that represents the highest value of the three.

It means that it is also the activity that has the lowest opportunity cost among the three, because any other alternative is less valuable to you.

7 0

4 years ago

Lawn Chopper Company sells two types of lawn mowers. The first one is a basic lawn mower, which has variable costs of $50 and se

Temka [501]

Answer:

See below

Explanation:

Breakven even point is computed as

= Fixed costs / ( Sales price per unit - Variable costs per unit)

For basic lawn mower, Given that;

Fixed cost = $5,000,000

Sales price per unit = $150

Variable costs per unit = $50

BEP = $500,000 / ($150 - $50)

BEP = $500,000 / $100

BEP = 5,000 units

For Riding tractor, given that;

Fixed costs = $500,000

Sales price per unit = $1,500

Variable cost per unit = $500

BEP = $500,000 / ($1,500 - $500)

BEP = $500,000 / $1,000

BEP = 500 units

It therefore means that 5,000 units of basic Lawn mower must be sold to break even, while 500 units of riding tractor must be sold to break even.

7 0

3 years ago

U.S. imports are _____ produced in _____ and sold in _____. A. goods and services; any other country; the United States B.

maks197457 [2]

Answer:

The correct answer is option A.

Explanation:

US imports refer to the goods and services that are produced in some countries other than the US. These goods are then sold in the US. The imports for the US are exports for the country that is producing those goods and services.

While the goods and services that are produced in the US and sold in some other country are exports for the US and imports for the purchasing country.

6 0

3 years ago

A company paid $505,000 to purchase equipment and $15,500 to have the equipment delivered to and installed in the company's prod

Firdavs [7]

Answer:

Using the units-of-production method, the amount of depreciation expense the company would report in the income statement prepared for the year-ended October 31, 2018 would be $105,711.

Explanation:

The unit-of-production method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:

(Original Cost - Salvage value) / Estimated production capacity x Units/year

Depreciation expense (DE) is: ($520,500 - $5,500) / 28,500 operating hours x 11,700 hours = $211,421 yearly depreciation expense.

Depreciation from May 1 to October 31, 2018 (6 months): $211,421 / 2 = $105,711

5 0

3 years ago