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r-ruslan [8.4K]
3 years ago
8

A firm with 60% of sales going to variable costs, $1.5 million fixed costs, and $500,000 depreciation and sales of $3 million. H

ow does the current level of sales compare to the accounting break-even sales level
Business
1 answer:
Aliun [14]3 years ago
3 0

Answer:

Current sales are $2 million below the break-even level.

Explanation:

Calculation for How does the current level of sales compare to the accounting break-even sales level

First step is to calculate BEP using this formula

BEP= Fixed cost+depeciation/PV Ratio

Let plug in the formula

BEP= ($1.5 million+$0.5 million)/40%

BEP=$2 million/40%

BEP= $5 million

Now let calculate the current sales using this formula

Crrent sales =BEP-Sales

Let plug in the formula

Crrent sales=$5 million-$3 million

Crrent sales=$2 million

Therefore based on the above calculation the

Current sales of the amount of $2 million are below the break-even level.

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Answer:

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Explanation:

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5 0
3 years ago
On December 1, 2013, Keenan Company, a U.S. firm, sold merchandise to Velez Company of Canada for 150,000 Canadian dollars (CAD)
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Answer:

The correct answer is A

Explanation:

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3 years ago
The reward-to-risk ratio for stock A is less than the reward-to-risk ratio of stock B. Stock A has a beta of 0.82 and stock B ha
Katen [24]

Explanation:

According to the question , the reward - to - risk ratio for the stock A is lesser than that of the Stock B .

The beta values for both the stock is given as -

Stock A = 0.82

and ,

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From the above information , it can be implied that either stock B is under price or the stock A is overpriced, or both  .

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4 0
4 years ago
To protect consumers, the SEC requires brokers and dealers to information about securities. True or False
Mashutka [201]
Answer;
The above statement is true; 

<span>To protect consumers, the SEC requires brokers and dealers to reveal  information about securities.

Explanation;
The objective of the SEC (securities and Exchange Commission) is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. they also protect consumers by requiring brokers and dealers to reveal information about securities. </span>
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3 years ago
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Advocard [28]

Answer:

Inventory

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3 years ago
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