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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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Tomas increased his consumption of potato chips when the price of pistachios increased. For Tomas, potato chips and pistachios a
mixer [17]

Answer: A. substitutes in consumption.

Explanation:

The substitutes in consumption are products that can be replaced by others and satisfy the same desires or the same need. They respond to the buyer's need to consume a product whose price increases or can no longer purchase it.

<em>For example,</em> in this case, Tomas can no longer acquire pistachios (which are a snack) because increased in price, therefore the potato chips are replacing the pistachio as a snack because it is cheaper.

<em>I hope this information can help you.</em>

4 0
3 years ago
Read 2 more answers
In the far off kingdom of Viracien there is a healthy sized population of citizens over 16 years old. The last census indicated
Anarel [89]

Answer:

6.5%

Explanation:

Number of people unemployed = 237,000

Labor force = 5 million - 1.3 million - 50,000

Labor force = 3.65 million

Unemployment rate = Number of people unemployed/Labor force*100

Unemployment rate = 237,000/3.65 million*100

Unemployment rate = 6.4931501%

Unemployment rate = 6.5%

8 0
3 years ago
Ruth has a home office that she shares with her husband, Barret. She keeps track of her business profits and expenses in several
myrzilka [38]

Answer:

unlock the user cells and then protect the worksheet

Explanation:

In order for Ruth's husband, Barret not to alter other cells of the worksheet files, she has to unlock the user cells and then protect the worksheet.

By unlocking the user cells and protecting the work sheet, she has prevented her husband, Barret from making a change to other cells of the worksheet.

A worksheet refers to a sheet of paper on which one performs work. The worksheet Ruth used in he home office is the computer based work sheet (software) where she keeps records of her business transactions.

4 0
3 years ago
B. Lopez Company reports unadjusted first-year merchandise sales of 221,000 and cost of merchandise sales of $64,000. The compan
Annette [7]

Answer: See explanation

Explanation:

The year-end adjusting entry to record the cost side of sales returns and allowances will be:

Dr Inventory Return estimated $3200

Cr Cost of goods sold $3200

(To record expected coat of returns)

Note that the above calculation was done as:

= $64,000 × 5%

= $64,000 × 0.05

= $3200

3 0
3 years ago
A company issues $16200000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The
bekas [8.4K]

Answer:

The amount of interest expense which will be recognized in 2020 is $949,681.45.

Explanation:

The following are given in the question:

Bond value = $16200000

Bond interest rate = 5.8%

Proceed from bond = $15825541

Yield rate = 6%

The amount of interest expense which will be recognized in 2020 can now be calculated as follows:

Interest expense for January 1, 2020 to June 30, 2020 = Proceed from bond * Yield rate * (6 / 12) = $15825541 * 6% * (6 / 12) = $474,766.23

Discount amortized during first 6 months = Interest expense for January 1, 2020 to June 30, 2020 - (Bond value * Bond interest rate * (6 / 12)) = $474,766.23 - ($16200000 * 5.8% * (6 / 12)) = $474,766.23 - 469,800 = $4,966.23

Interest expense for July 1, 2020 to December 31, 2020 = (Proceed from bond + Discount amortized during first 6 months) * Yield rate * (6 / 12) = ($15825541 + $4,966.23) * 6% * (6 / 12) = $474,915.22

Interest expense to be recognized in 2020 = Interest expense for January 1, 2020 to June 30, 2020 + Interest expense for July 1, 2020 to December 31, 2020 = $474,766.23 + $474,915.22 = $949,681.45

Therefore, the amount of interest expense which will be recognized in 2020 is $949,681.45.

3 0
3 years ago
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