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Novosadov [1.4K]
3 years ago
5

. If Canace Company, with a break-even point at $313,500 of sales, has actual sales of $570,000, what is the margin of safety ex

pressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $fill in the blank 1 2. fill in the blank 2 % b. If the margin of safety for Canace Company was 25%, fixed costs were $1,419,375, and variable costs were 75% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $fill in the blank 3
Business
1 answer:
Gre4nikov [31]3 years ago
6 0

Answer:

Canace Company

a-1) Margin of safety is:

= $256,500.

a-2) Margin of safety is:

= 55%.

b) The amount of actual sales is:

= $5,677,500.

Explanation:

a) Data and Calculations:

Break-even point sales = $313,500

Actual sales = $570,000

Margin of safety = $256,500 ($570,000 - $313,500)

Margin of safety as a percentage of sales = 55% ($313,500/$570,000 * 100)

2) Margin of safety = 25%

Fixed costs = $1,419,375

Break-even point in sales dollars = $1,419,375

Variable costs = 75% of sales

Contribution margin at break-even point = 25% (100% - 75%) = $1,419,375

Actual sales in dollars = $5,677,500 ($1,419,375/25%)

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Answer:

Explanation:

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E(R) = w1 * R1 + w2 * R2

E(R) = 65% * 18% + 35% * 6%

E(R) = 11.70% + 2.10%

Expected Return, E(R) = 13.80%

Standard deviation of portfolio is mathematically represented as:

\sigma =\sqrt{w_1^2\sigma _1^2+w_2^2\sigma _2^2+2w_1w_2p_{1,2}\sigma_1\sigma_2}

where

w1 = the proportion of the portfolio invested in Asset 1

w2 = the proportion of the portfolio invested in Asset 2

σ1 = Asset 1 standard deviation of return

σ2 = Asset 2 standard deviation of return

For risk free money market fund, standard deviation = 0 and its correlation with risky portfolio = 0

\sigma  =\sqrt{ (0.65 * 0.30)^2 + (0.35 * 0)^2 + (2 * 0.65 * 0.30*0.35 *0*0)} \\\\= \sqrt{0.038025 +0+0} \\\\ = 0.195

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7 0
3 years ago
Credit offered in the form of ____________ is most common in department and clothing stores and other high-volume outlets, where
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Answer:

retail charge cards

Explanation:

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Hence, the use of credit cards by consumers broadens a small company's customer base.

This ultimately implies that, small businesses or companies who avail their customers the opportunity to pay using a credit card will increase the number of customers that would patronize them because they are typically buying the goods and services on credit.

Generally, there are three (3) main types of credit card and these includes;

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2 years ago
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Answer:

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According  to this, the answer is that in the new-product development process, the TeaForMe company is in the idea screening stage because they generated a new idea an then, evaluated that idea and decided to drop it because it was inconsistent with the organization's new-product strategy.

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3 years ago
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Answer:

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Given:

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Now, the price is​ $2.40 per gallon.

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Based on this​ information, what is the absolute price elasticity of demand for​ gasoline?

<u>Solution:</u>

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Price elasticity of demand = \frac{\% change\ in\ quantity\ demanded}{\% change\ in\ price}

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Answer: the correct answer is measuring salaries expense

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3 years ago
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