1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ASHA 777 [7]
3 years ago
5

Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. If the c

ompany expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales.
Business
1 answer:
Ipatiy [6.2K]3 years ago
5 0

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the break-even point in units and sales dollars:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 354,000 / (175 - 116)

Break-even point in units= 6,000

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 354,000 / (59 / 175)

Break-even point (dollars)= $1,050,000

<u>Now, the margin of safety and margin of safety rate:</u>

Margin of safety= (current sales level - break-even point)

Margin of safety= (10,000*175) - 1,050,000

Margin of safety= $700,000

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= 700,000 / 1,750,000

Margin of safety ratio= 0.4= 40%

You might be interested in
Which of the statements below is​ TRUE?A.Accounting Identity​ is: Assets equivalentLiabilities minus​Owners' Equity.B.Accounting
jeka57 [31]

Answer:

C.Accounting Identity​ is: Assets equivalentLiabilities​ + Owners' Equity.

Explanation:

In accounting identity all variables must balance, if they do not balance according to the equation then there must be an error in formulation, measurement or calculation.

The basic assumption in accounting identity is that the balance sheet must balance. That is assets must be equal to a sum of liabilities and owner's equity.

Asset= Liabilities+ Owners Equity.

This relationship is based on the convention of double entry, for every debit there is an equal credit.

8 0
3 years ago
Individual profit earned by Dave, the oligopolist, depends on which of the following? (i) The quantity of output that Dave produ
UkoKoshka [18]

The options are:

(i) The quantity of output that Dave produces (ii) The quantities of output that the other firms in the market produce (iii) The extent of collusion between Dave and the other firms in the marketa. (i) and (ii)b. (ii) and (iii)c. (iii) only d. All of the above

Answer:

d. All of the above

That is

(i) The quantity of output that Dave produces

(ii) The quantities of output that the other firms in the market produce

(iii) The extent of collusion between Dave and the other firms in the market.

Explanation:

An oligopoly is defined as an economy where there are small number of firms that cannot prevent others from having much impact in the market. These firms control the way are done with regards for price.and supply of goods and services.

So in this type of market the profit earned by Dave will depend on quantity of output produced by Dave, quantity of goods manufacturerd by other firms, and Dave's degree of collusion with other firms.

7 0
3 years ago
Read 2 more answers
What is the Racial Wealth Gap?
Gemiola [76]

Explanation:

the racial wealth gap in the United States is the disparity in median wealth between the different races . This gap is most pronounced between whitehouseholds and racia minorities

5 0
2 years ago
A company buys an oil rig for $3,000,000 on January 1, 2018. The life of the rig is 10 years and the expected cost to dismantle
kherson [118]

Answer:

$346,266.00

Explanation:

The expense that should be recorded for 2018 as a result of the events is the depreciation charge plus the finance charge on the present of value of dismantling cost

depreciation=(cost of oil rig+present value of dismantling cost)/10 years

cost of oil rig is $3,000,000

present value of dismantling cost=$231,330

depreciation charge=($3,000,000+$231,330)/10=$323,133.00  

finance charge=$231,330*10%=$23133

total expense=$23,133.00 +$323,133.00 =$346,266.00  

5 0
3 years ago
Sergio has decided to diversify his investments in the following way: $4,000 in an account earning 3.2% simple interest $4,000 i
expeople1 [14]

The total interest earned is $2999.11

Explanation:

In the first account, $4,000 in an account earning 3.2% simple interest and time is 4 years

The formula to apply is;

A=P(1+r/n)^nt where

A=Amount at the end of the period= ?

P=starting amount = $4000

r=3.2% = 3.2/100 =0.032

n=number of times interest applied per time period=1

t=number of time period elapsed

Substituting the values in the formula;

A=P(1+r/n)^nt

A=4000(1+0.032)⁴

A=4000(1.032)⁴

A=4537.10

Interest earned = 4537.10-4000 = $537.10

In the account , $4,000 in a savings account earning 2.1% interest compounded annually

n=1 if compounded annually, then apply the formula;

A=P(1+r/n)^nt

A=4000(1+0.021)⁴

A=4000(1.021)⁴

A=4346.73

Interest earned = 4346.73-4000 = $346.73

In the account , $7,500 in a certificate of deposit earning 5% interest compounded quarterly, n=4

A=P(1+r/n)^nt

A=7500(1+0.05/4)^4*5

A=7500(1+0.0125)^20

A=7500(1.0125)^20

A=9615.28

Interest earned = 9615.28 - 7500 = $2115.28

Total interest earned = $537.10 +$346.73 + $2115.28 =$2999.11

Learn More

Compound Interest :brainly.com/question/7014337

Keywords : investment, account , earning, simple interest, compound interest, annually, quarterly

#LearnwithBrainly

6 0
3 years ago
Other questions:
  • Data concerning Follick Corporation's single product appear below: Selling price per unit $ 300.00 Variable expense per unit $ 7
    6·1 answer
  • A higher interest rate (discount rate) would:________
    8·1 answer
  • Please somebody help me
    14·1 answer
  • Jamestown's location made it a poor choice for settlement because it __________.
    10·1 answer
  • Five independent projects are available for a small manufacturing company. Which projects should be selected if initial investme
    9·1 answer
  • Mark always avoids high-end brands as he considers them too expensive. However, in one of his shopping trips, he notices that a
    13·1 answer
  • Look at Ivan's check register. Ivan spent $158.29 on groceries. He then transferred $250 to his savings account.
    12·2 answers
  • What precautions does the government take to protect money?
    9·1 answer
  • An Investment Adviser Representative (IAR) is also a registered broker-dealer. The IAR has a brokerage client who has a $1,200,0
    12·1 answer
  • A local chamber of commerce plans a seminar on ""the social responsibility of business in our community. "" what does the term r
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!