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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

You might be interested in
What was Thomas Malthus’s theory of population growth?
Rufina [12.5K]

Answer:

A population would grow faster than its ability to feed itself.

Explanation:

Thomas Malthus' theory, in my personal beliefs, is remarkably accurate and quite rational. He argued that if one were to have a country/population left unchecked, as in without any form of administration, government, or central authority to balance it, that a population would thus outgrow its resources and thus result in overpopulation and a lack of necessities... something that may, perhaps, lead to eventual extinction.

This is fairly factual when you think of the contemporary age. The earth was previously believed to have a carrying capacity of about 2-40 billion people, an argument that eventually centered on around 7 billion. Today, the earth's maximum carrying capacity is generally percieved to be about 9 billion people. In this age, we currently are nearing 8 billion.

This. Is. An. Issue.

A plethora of earth's resources that life itself depends on is LIMITED. Our freshwater reserves are limited. The amount of animals on this planet, a source of food, is <em>also </em>limited. The amount of plants on this planet, significant sources of energy, food, oxygen, and all sorts of natural processes that keep everything alive, are, unfortunately, limited.

This demands that humans figure a way to require less of these precious resources, fast. By the year of 2150, we'll likely have surpassed our carrying capacity.

For the issue of food, there are options. The primary issue is that humans are omnivores, as in, we love both plants AND animals... in our stomach's, of course. A prime example is myself! Personally, I couldn't live without beef, but I <em>definitely </em>couldn't or wouldn't want to survive without spinach and broccoli, because they are absolutely delicious.

However, despite humans being omnivores, we stubbornly refuse to eat our veggies. . . meaning a mass majority of us prefer to eat meat. We breed our animals to have offspring, giving us more meat. We generically enhance or even create our meat. We love meat.

The issue being that meat is a terrible source of energy. Remember, energy comes from sources of life itself, like the sun! PLANTS take the mass majority of this energy in, not animals. Animals EAT the plants, to where as much as 80% of that initial energy source is lost, disappearing into nothing, and meaning only roughly 20% is absorbed into the animal upon eating the said plant. Then, and only then, HUMANS come to eat the animal, in which 80% of that initial 20% is also lost between these stages.

As you can see, humans end up with barely any amount of this vital energy, simply because we love meat. We feed the plants to the animals to keep them healthy so WE can then eat the said animals, thus resulting in a HUGE loss of energy. We use our land for pastures. We give other resources (like water) to the animals, again, so we can eventually consume them.

The earth is going to run out of resources at one point or another, but our current consumption habits will likely hasten this process as far as freshwater and food.

Ofc, it shouldn't need to be said that if we were ALL to switch to primarily plant-only consumption, we'd probably be set. Getting rid of all our pastures and replacing them with massive farms would give is a surplus of plants, which are remarkably better sources of energy and will thus be able to sustain humans much, much longer. We won't have to worry as much about starving.

Then again, you must ALSO worry about the fragility of plants. They can easily be detroyed by natural disastors and are dependant upon environmental conditions such as weather temperature, climate, and soil. These factors are very limiting, but then you must additionally remember the amount of care they require, as well as they are extremely vunerable to mass destruction (like droughts, burning, flooding, etc., which can wipe out a LOT at once).

Obviously it's a give-or-take thing.

Malthus said it right, three hundred years ago.

I get the length of this post was probably uneccesary but you asked a very good question that gave me an excuse to cover something in-depth.

I am inevitable.

~Troy

3 0
3 years ago
All of the following are associated with reporting controllable costs except:a. At lower levels, management have fewer controlla
stira [4]

Answer:

a. At lower levels, management have fewer controllable costs

Explanation:

The opposite is true, lower-level management have more controllabe costs than higher level management because top management focuses on the general strategy of the firm, while lower management focuses on the specific production processes.

It is in these specific production processes that many controllable costs arise. A production line supervisor (part of lower-level management) can directly control some variable costs such as energy used, amount of input, or even work hours.

3 0
3 years ago
Explain why supply and price are positively related
pishuonlain [190]

Answer:

see below

Explanation:

A positive correlation signifies that an increase in one variable results in the other variable moving in the same direction. Because supply and price are positively correlated, a price increase will increases supply. The opposite is also true.

Suppliers are business people whose main objective is to make profits. Higher prices give higher margins. Suppliers make higher profits when prices are high. The possibility of making higher profits motivates suppliers to increase supplies to the market. On the other hand, low prices may result in losses. When prices are low, supplies will shy away from the market to avoid making losses.

6 0
2 years ago
The following is the sales budget for Coore, Inc., for the first quarter of 2019. January February March Sales budget $168,000 $
nekit [7.7K]

Answer:

a. Sales for November = $192,666.67

b. Sales for December = $390,500

c. Cash collections for:

January = $216,200

February = $213,075

March = $191,750

Explanation:

First consider the following information:

Credit sales are collected as follows:

65% in the month of the sale

20% in the month after the sale

15% in the second month after the sale

a. To calculate sales for November, note that the account receivable balance at the end of the previous quarter is from the sales of the previous two months (November and December), of these sales, we are told that $78,100 is from December sales, therefore to calculate the amount from November sales = 107,000 - 78,100 = $28,900.

Next, we are told that the 15% of sales are collected is the second month following sales, and January is the second month following the November sales from the previous quarter, therefore, the $28,900 from the previous November sales is 15% of the original sales, and the original sale is calculated thus:

Let sale for November be N

15% of N = 28,900

15/100 × N = 28,900

0.15N = 28,900

∴ N = 28,900 ÷ 0.15 = $192,666.67 ( to 2 decimal places)

b. The $78,100 which was uncollected December sales is 20% of the original sales, since December is the one month away from the beginning of the new quarter, and 20% of sales is collected in the month following sales. Therefore December sales is calculated as follows:

Let December sales be D

20% of D = 78,100

0.20 × D = 78,100

∴ D = 78,100 ÷ 0.20 = $390,500

c.

i. Cash collections in January

from previous quarter = $107,000

from January's sales = 65% of January sales

= 0.65 × 168,000 = 109,200

Total cash collection in January = $216,200

ii. cash collections in February:

From December sales = 15% of December sales ( Fabruary is 2 months following December sales)

= 0.15 × 390,500 = $58,575

from January's sales = 20% of January sales (February is the month following January's sales)

= 0.20 × 168,000 = $33,600

from February's sale = 65% of February's sales

= 0.65 × 186,000 = $120,900

Total cash collections in February = 58,575 + 33,600 + 120,900 = $213,075

iii. Cash collections in March

From January's sale = 15% of January's sales

= 0.15 × 168,000 = $25,200

from February's sale = 20% of February's sale

= 0.20 × 186,000 = $37,200

From March's sale = 65% of March's sale

= 0.65 × 199,000 = $129,350

∴ Total cash collections for March = 25,200 + 37,200 + 129,350 = $191,750

7 0
2 years ago
In year 1000 a man named acholos nemroc celebrated him birthday, turning 100 years old, how old was he in -100?
Over [174]

Answer:

Okay

Explanation:

The answer is jjgxhkdyyffhohohugugojjhyfyffygihhhyghv28283939

3 0
3 years ago
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