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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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An adult with a developmental disability works at a local product fulfillment and distribution center. She takes the bus to get
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When the workers in a workshop encounter operating difficulties or breakdowns while handling their machinery, they seek the help
omeli [17]

Answer:

D. Technical problem solver.

Explanation:

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3 years ago
Which of the following is true?
shepuryov [24]

Answer:

The correct answer is letter "A": Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.

Explanation:

Overhead is an accounting term used for costs that must be paid, even though the company receives no profits. A company would not be able to survive without paying its overhead expenses but the costs are not connected directly to a product or service being generated. Examples of overhead costs are rent, utilities, office supplies, and maintenance.

<em> </em>

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5 0
3 years ago
FarCry Industries, a maker of telecommunications equipment, has 26 million shares of common stock outstanding, 1 million shares
Margaret [11]

Answer:

wP = 114.5 / 514.6   = 0.2225 or 22.25%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm can be made up of one or more of the following components namely debt, preferred stock and common equity. The WACC is normally calculated using the market value of these components. The formula for WACC is,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • wD, wP and wE represents the weight of debt, preferred stock and common equity in the capital structure based on the market value
  • rD, rP and rE are the cost of debt, preferred stock and common equity respectively.

To calculate the weight that should be assigned to the preferred stock in the calculation of WACC, we need to determine the market value of preferred stock and the market value of the capital structure.

Market Value - Debt = 10000 * 1000 * 1.01  =  $10.1 million

Market Value - Preferred stock = 1 * 114.50  = $114.5 million

Market Value - Common equity = 26 * 15  =  $390 million

Total MV of capital structure = 10.1 + 114.5 + 390  = $514.6

wP = 114.5 / 514.6   = 0.2225 or 22.25%

3 0
3 years ago
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