Answer:Margin of safety expressed in dollars=$88,000
Margin of safety as a percentage of sales =22%
Explanation:
Margin of Safety is the sales greater the break-even point that helps businesses gauge and prevent a loss. A Higher Margin of Safety is preferred as it limits the risk of businesses making loss
Margin of safety expressed in dollars= Total actual sales - break-even point of sales
$400,000 - $312,000
=$88,000
Margin of safety as a percentage of sales =Margin of safety/ Actual sales x 100
$88,000/ $400,000 x 100
0.22 x 100
= 22%
The answer is E all of the above, hope this helps :)!!
Answer:
4.96%
Explanation:
In order to determine the component after-tax cost of debt first we need to compute the before tax cost of debt by applying the RATE formula which is to be shown in the attachment below:
Given that,
Present value = $1,155
Future value or Face value = $1,000
PMT = 1,000 × 8.25% ÷ 2 = $41.25
NPER = 40 years × 2 = 80 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula
1. The pretax cost of debt is 3.54% × 2 = 7.08%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.08% × ( 1 - 0.30)
= 4.96%
Answer:
C. 4.00
Explanation:
The interest coverage ratio is the same as times interest earned.
It is a the financial ratio that shows how many times over the income or earnings before interest and tax can be used to pay the interest payable in the same period.
Hence, Interest coverage
= Earnings before interest and taxes (EBIT) / Interest expense
EBIT = $580,000 - $350,000 - $45,000 - $90,000 -$15,000
= $80,000
The company's interest coverage ratio is
= $80,000/$20,000
= 4.00
Bonus is the closing technique used by jim.
<h3>Bonus Close: What is it?</h3>
They may accept the arrangement if they feel they have received something for nothing out of concern that you would take it away from them once more. You might also engender a sense of reciprocity by giving them something. The Delighter Close and the Extra Close are other names for the Bonus Close.
<h3>What is Closing Bonus Payments?</h3>
The total incentive or compensation payments that the company will make at the closing based on the Base Purchase Price, as specified on Schedule CBP, are referred to as Closing Bonus Payments.
learn more about Bonus Close here <u>brainly.com/question/6626507</u>
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