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3 years ago

6

Stockmaster Corporation has provided the following contribution format income statement. Assume that the following information i

s within the relevant range. Sales (8,000 units) $ 320,000 Variable expenses 192,000 Contribution margin 128,000 Fixed expenses 121,600 Net operating income $ 6,400 The margin of safety in dollars is closest to: Multiple Choice $121,600 $128,000 $6,400 $16,000

1 answer:

valkas [14]3 years ago

6 0

Answer:

$16,000

Explanation:

Calculation to determine what The margin of safety in dollars is closest to

First step is to calculate the Contribution margin ratio using this formula

Contribution margin ratio=Contribution margin/Sales

Let plug in the formula

Contribution margin ratio=(128,000/320,000)

Contribution margin ratio=0.4

Second step is calculate the breakeven sales using this formula

Breakeven sales=(Fixed cost/Contribution margin ratio)

Let plug in the formula

Breakeven sales=121600/0.4

Breakeven sales=$304,000

Now let determine the Margin of safety using this formula

Margin of safety=Total sales-Breakeven sales

Let plug in the formula

Margin of safety=320,000-304,000

Margin of safety=$16,000

Therefore The margin of safety in dollars is closest to: $16,000

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The simple interest earned on a certain amount is double the amount when invested for 10 years. What is the interest rate being

asambeis [7]

Answer: 10%

Explanation:

The formula to calculate the simple interest (I) is given by :-

$I=Prt---------(1)$

Final amount : $A=P+I---------(2)$

Given : The simple interest earned on a certain amount is double the amount when invested for 10 years.

i.e A = 2P

Put this in equation (2), we get

$2P=P+I\\\\\Rightarrow\ I=P$

Put the value of I in (1), we get

$P=Prt\\\\\Rightarrow\ rt=1$

Since t=10 years {given} , then

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3 years ago

On January 2, 2017, Vaughn Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of $10,1

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Answer:

Dr Notes Receivable $10,100

Cr Discount on Notes Receivable$1,000

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Cr Inventory $5,460

Explanation

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Vaughn Inc

Journal entry

January 2, 2017

Dr Notes Receivable $10,100

Cr Discount on Notes Receivable

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4 years ago

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Answer:

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$5,000 × (1 + interest rate) = $5,700

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3 years ago

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Answer:

The correct answer is option C.

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Since investment expenditure is a component of aggregate demand, a decline in the investment will cause the aggregate demand to decrease as well.

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