Answer:
Margin of safety=55.6%
Explanation:
The formula for the operating income is as folows;
operating income=Sales revenue-total cost
where;
operating income=$ 15,000
Sales revenue=S
total cost=variable cost+fixed cost
variable cost=70% of S=(70/100)×S=0.7 S
fixed cost=$12,000
replacing;
15,000=S-(0.7 S+12,000)
15,000+12,000=0.3 S
27,000=0.3 S
S=27,000/0.3
S=Answer:
Explanation:
The formula for the operating income is as follows;
operating income=Sales revenue-total cost
where;
operating income=$ 15,000
Sales revenue=S
total cost=variable cost+fixed cost
variable cost=70% of S=(70/100)×S=0.7 S
fixed cost=$12,000
replacing;
15,000=S-(0.7 S+12,000)
15,000+12,000=0.3 S
27,000=0.3 S
S=27,000/0.3
S=$90,000
Current sales=$90,000
The formula for margin of safety is as follows;
Margin of safety=(Current sales level-break even point sales level)/current sales levels
At break even,
Operating income=0
0=S-(0.7 S+12,000)
0=S-0.7 S-12,000
0.3 S=12,000
S=12,000/0.3
S=40,000
Break even sales=$40,000
replacing;
Margin of safety=((90,000-40,000)/90,000}×100
Margin of safety=55.6%
Answer:
The correct answer is B. Help offset changes in GDP.
Explanation:
In addition to the discretionary fiscal policies, through which the authorities actively decide to adjust spending or income in response to changes in the economic cycle, the variations that occur in these items must be taken into account without the need for governments Make new decisions. In the latter case, the changes respond to the role of automatic stabilizers.
Automatic stabilizers are those items of public budgets that are automatically altered, hence their denomination, as a result of changes in the level of economic activity. On the income side, it is worth pointing out the main stabilizers are the taxes that tax corporate profits, the income of workers or the consumption of goods and services; On the expense side, unemployment benefits, which support the income of families in times of increased unemployment, are one of the most relevant stabilizers.
Answer:
The correct answer is option (C).
Explanation:
According to the scenario, the given data are as follows:
Stock M = $18,200
Expected Return on Stock M = 10.40%
Stock N = $30,900
Expected return on Stock N = 14.30%
So, we can calculate the expected return on portfolio by using the following formula:
Expected return = Respective return (Stock M) × Respective weights (stock M) + Respective return (Stock N) × Respective weights (stock N)
Here, Total investment= ($18,200 + $30,900) = $49,100
So, by putting the value
Expected Return = (18200/49100 × 10.4) + (30900/49100 × 14.30)
= 12.85% (Approx).
Hence, the expected return on the portfolio is 12.85%.
Answer:
312.5 million
-3.68 million
11040
Explanation:
The amount of deposits is $312.5 million
The reserve shortage created by deposit outflow of 4 million is - $3.68 million
The cost of the reserve shortage if Angus Bank borrows in the federal funds market is (federal funds rate is 0.3%) is $11040
The PPC will, of course, grow as the community is working hand in hand towards development. Small businesses will create jobs for the members of the community. But if 100 people will withdraw from the developing community, it will still be normal as long as they will know how to adjust with the current developments that they have done.
