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34kurt
2 years ago
12

a. If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety

expressed (1) in dollars and (2) as a percentage of sales
Business
1 answer:
lutik1710 [3]2 years ago
8 0

Answer:

Results are below.

Explanation:

Giving the following information:

Break-even point in sales= $960,000

Actual sales= $1,200,000

<u>To calculate the margin of safety in dollars and as a percentage, we need to use the following formulas:</u>

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

Margin of safety= (1,200,000 - 960,000)

Margin of safety= $240,000

Margin of safety ratio= (current sales level - break-even

point)/current sales level

Margin of safety ratio= 240,000 / 1,200,000

Margin of safety ratio= 0.2 = 20%

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When the economy is producing the level of output equal to natural Real GDP, the unemployment rate is equal to :A. zero. B. the
VLD [36.1K]

Answer:

B. the natural unemployment rate.

Explanation:

When the level of output is equal to natural real GDP, it indicates that the country has reach a very optimal level of production has efficiently utilize all resources that it has in its disposal. These 'Resources' include both human , capital, and natural resources.

Natural employment rate is the amount of employment rate that occurs after a country has fully utilize its resources.  Like mentioned above,  This situation will arise when the level of  of output equal to natural Real GDP

Since there is little to no human resources left unused which make natural unemployment rate basically equal to the total employment rate that exist in that country.

7 0
3 years ago
You are selling a product in an area where 30 % of the people live in the city and the rest live in the suburbs. Currently 20 %
irina1246 [14]

Answer:

a). I would adopt the increase in market share in the suburbs by 15 % since the number of final suburbs dwellers who will use my product is (0.0805 x) which is  greater than final city dwellers' (0.075 x)

b). The total percentage of people who are city dwellers who own your product before the new sales drive=46.15%

Explanation:

a). We can make the following expressions;

Total number of both city dwellers and suburb dwellers=x

City dwellers=30% of x=(30/100)×x=0.3 x

Suburb dweller=70% of x=(70/100)×x=0.7 x

Total number of city dwellers who use your product initially=(20/100)×0.3 x=0.06 x

Total number of suburb dwellers who use your product initially=(10/100)×0.7 x=0.07 x

If we increase the market share in the suburbs by 15%

Number of suburb dwellers=0.07 x+(15/100)×0.07 x

Number of suburb dwellers=(0.07 x+0.0105 x)=0.0805 x

If we increase market share in the city by 25%

Number of city dwellers=0.06 x+(25/100)×0.06 x

Number of city dwellers=(0.06 x+0.015 x)=0.075 x

I would adopt the increase in market share in the suburbs by 15 % since the number of final suburbs dwellers who will use my product is (0.0805 x) which is  greater than final city dwellers' (0.075 x)

b). Percentage of city dwellers that own your product

Percentage=(Initial number of city dwellers/Total number of people)×100

Percentage=0.06 x/(0.06 x+0.07 x)=(0.06 x/0.13 x)×100=46.15%

The total percentage of people who are city dwellers who own your product before the new sales drive=46.15%

8 0
3 years ago
During the year, Belyk Paving Co. had sales of $2,485,000. Cost of goods sold, administrative and selling expenses, and deprecia
Afina-wow [57]

Answer:

$888,000

Explanation:

In order to determine how much new debt was added, we must calculate cash flows:

first we need to determine net income:

sales ($2,485,000) - COGS ($1,349,000) - S&A expenses ($660,000) - depreciation expense ($462,000) = EBIT = $14,000

since EBIT is lower than interest expense ($14,000 ≤ $287,000), we can assume there was a loss. But the question tells us to ignore any tax losses. So net income = $14,000 - $287,000 = -$273,000

operating cash flow = net income + adjustments = -$273,000 + $462,000 = $189,000

there were not capital spending and no new investments made, so cash flow from investing activities = $0

so the net cash flow from assets = $189,000

net cash flow form assets = net cash flow from stockholders + net cash flow from liabilities

net cash flow from stockholders = common stock issued - dividends = $0 - $412,000 = -$412,000

$189,000 = -$412,000 + net cash flow from liabilities

$601,000 = net cash flow from liabilities

net cash flow from liabilities = net new long term debt - interest expense

$601,000 = net new long term debt - $287,000

net new long term debt = $601,000 + $287,000 = $888,000

6 0
3 years ago
Which act outlines regulations to control smoke and other forms of pollution from various sources, whether stationary or in moti
hoa [83]

The clean air act outlines regulations to control smoke and other forms of pollution from various sources, whether stationary or in motion.

<h3>What is pollution</h3>

Pollution is the release of dangerous and toxic substances to the air or environment which are toxic to human health and prone health hazards.

Therefore, The clean air act outlines regulations to control smoke and other forms of pollution from various sources, whether stationary or in motion.

Learn more about pollution below.

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8 0
2 years ago
Grib Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The pred
gregori [183]

Answer:

$270,000

Explanation:

Calculation of total manufacturing cost assigned to Job 436

Direct Materials

Dept A                                                   $50,000

Dept B                                                    $10,000

Direct Labor

Dept A      ($80,000 x 1/2)                   $40,000

Dept B                                                   $60,000

Manufacturing Overheads

Dept A                                                   $80,000

Dept B   ($60,000 x 50%)                    $30,000

Total                                                     $270,000

Therefore,

The total manufacturing cost assigned to Job 436 was $270,000.

8 0
3 years ago
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