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just olya [345]
3 years ago
10

A company has break-even sales of $200,000. If the company expects sales of $500,000, the margin of safety i is________.

Business
1 answer:
zhuklara [117]3 years ago
7 0

Answer:

Margin of safety = $300000

Explanation:

The margin of safety is the amount or units in excess of the break even level of sales or units. It is the region beyond the break even point and represents the profit for the business. Any units in excess of the break even point represents the margin of safety.

The margin of safety for the given question with expected sales of $500000 and break even sales of $200000 can be calculated as follows,

Margin of safety = 500000 - 200000  =  $300000

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harkovskaia [24]

Answer:price elasticity of demand for Dunkin Donuts’ regular coffee is 1.8

Explanation: Using the midpoint formnulae

Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.

Percentage change in quantity = new quantity  - old quantity  / (new quantity + old quantity)/2  x 100

= 40-10/(40+10)/ 2 = 30 /25 = 1.2 x 100 =120%

Percentage change in price  = new price   - old price   / new price + old price)/2   x 100

= 1- 2 / (1+2)/2= -1/1.5x 100 = -66.67 %

Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.

= 120%/-66.67%= -1.79 = -1.8

For Price elasticity of demand, the sign is not included and the basis for elasticity is on the value itself . here we can conclude that the Price elasticity of demand for Dunkin donut is 1.8 and elastic because a fall in price led to an increase in amount being sold.

3 0
3 years ago
Depreciation Methods Vorst Corporation's schedule of depreciable assets at December 31, 2016, was as follows: Asset Cost Accumul
lions [1.4K]

Answer:

c. $14,400

Explanation:

Double declining depreciation method can be described as an accelerated depreciation technique which charges depreciation expense faster than the straight-line depreciation method, because double declining method obtains its depreciation rate by multiplying the rate of straight-line depreciation method by 2.

From the Vorst Corporation's schedule of appreciable assets at December 31, 2016, the following data are obtained for Asset A:

Cost = $100,000

Accumulated Depreciation = $64,000

Acquisition Date = 2015

Residual value = $20,000

Estimated useful life = 5 years

Therefore, we have:

Straight line method depreciation rate = 1 / Estimated useful life = 0.20, or 20%

Double declining depreciation rate = Straight line method depreciation rate * 2 = 40%

Beginning book value in 2017 = Cost - Accumulated Depreciation = $100,000 - $64,000 = $36,000

Depreciation expense for 2017 = Beginning book value in 2017 * Double declining depreciation rate = $36,000 * 40% = $14,400.

Therefore, Vorst should record $14,400 as depreciation expenses in 2017 for Asset A.

Important End Note:

Under the double declining depreciation method, residual is adjusted for in the last year of the estimated useful life of the asset.

Based on the information for Asset A, its last useful year is 2019 and that is why the residual value is not adjusted for in 2017 above.

6 0
3 years ago
Grandfather clocks have a particular market in auctions. One theory about the price at an auction is that it is higher when ther
anastassius [24]

Answer:

t value is 1.495

Explanation:

The null and alternative hypothesis are :

H0 : mu = 1327

ha: mu > 1327

This is a one tailed test

Critical value = 1.771

at 0.05 significance level with df = 14-1 = 13

test statistics:

s = 411.53, n = 14

t = (xbar -mu)/(s/sqrt9n))

= ( 1491.43 - 1327)/(411.53/sqrt(14))

= 1.495

Decision:

Reject H0 if tstat > 1.771

Fail to reject H0

5 0
3 years ago
Shelby is looking to purchase a new car. She knows from her marketing class, that she should research the different models she i
MaRussiya [10]

Answer:

This example shows that one of the reasons to study marketing is that it is a part of everyday life.

Explanation:

Marketing can be defined as the process through which products reach from concept to the customers. It involves the process of studying, observing and understanding the market. Market research is done to understand the needs of consumers.

There are a number of reasons it is beneficial to study marketing. For instance,

  1. We often come across marketing in daily life.
  2. Marketing graduates get a good salary.
  3. There is always a demand for marketing experts.
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6 0
3 years ago
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Answer:

Her investing plan is saving up by finding a place to keep money you should probably worry on other things save up then spend if not you'll probably lose more money than needed find a place where they dont change much based on your money find a place where theres no scams you need to research to find a plan and a safe place.

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