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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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Answer:

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Explanation:

Integrated business planning (IBP), which consists of synchronizing commercial, financial and supply chain plans in a single holistic administrative process, is vital to meet the evolving requirements of modern supply chains. An advanced form of sales and operations planning (S&OP) is the IBP that is increasingly being adopted in the manufacturing, distribution and service sectors. Companies that implement IBP programs in a strategic way generally exceed 20% of gross margin on average to companies that apply S&OP in a more tactical and less integrated way.

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-------------------- -----------------------

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187,500

-------------------- ----------------

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Ending inventory × 0.75 (58,000 × 0.75) = 43,500

Cost to retail ratio.

Ending inventory. $43,500

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