Answer:
1. 6,944 units and $833,333.33
2. $1,080,000 and 22.83%
Explanation:
The computations are shown below:
1. Break-even point in units
= (Fixed expenses ) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit × contribution margin ratio
= $250,000 ÷ $36
= 6,944 units
Break-even point in sales
= (Fixed expenses ) ÷ (Contribution margin ratio)
= $250,000 ÷ 30%
= $833,333.33
2. For margin of safety and margin of safety ratio:
Margin of safety = Expected sales - break even sales
where,
Expected sales = (Operating income + fixed expense) ÷ (contribution margin ratio)
= ($74,000 + $250,000)
= ($324,000) ÷ (30%)
= $1,080,000
So, the margin of safety would be
= $1,080,000 - $833,333.33
= $246,667
Margin of safety ratio = Margin of safety ÷ total sales
= $246,667 ÷ $1,080,000
= 22.83%
Answer:
The answer is: D) Risk is a measure of the uncertainty surrounding the return that an investment will earn.
Explanation:
Investment risk refers to the probability of losing an investment. It measures the uncertainty level of earning returns from an investment.
When an investor anticipates a higher risk, he will expect higher returns. On the contrary, low risk investments (e.g. T-Bills) offer very low yields.
Option C. Suppose there is an increase in the number of buyers of cars and an increase in the cost of manufacturing cars. The basic graphing model of supply and demand predicts: the equilibrium price of cars will increase, but the impact on the equilibrium quantity of cars cannot be determined without additional information
<h3>What is demand?</h3>
This is the term that is used to refer to the number of people that are willing to buy a product at a given wage rate.
When there is a rise in the demand of cars, there would be a rise in rhe equilibrium price of the cars.
Complete question
Suppose there is an increase in the number of buyers of cars and an increase in the cost of manufacturing cars. The basic graphing model of supply and demand predicts:
A. The equilibrium, quantity of cars will decrease, but the impact on the equilibrium price of cars cannot be determined without additional information
B. The equilibrium quantity of cars will increase, but the impact on the equilibrium price of cars cannot be determined without additional information.
C. the equilibrium price of cars will increase, but the impact on the equilibrium quantity of cars cannot be determined without additional information
D. the equilibrium price of cars will decrease, but the impact on the equilibrium quantity of cars cannot be determined without additional information
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Answer:
$1400 U
Explanation:
Total direct materials cost variance = (47,000 actual pounds × $1.20 actual cost per pound) − (50,000 standard pounds × $1.10 per pound) = $1,400 unfavorable
Answer:
a) The effect the rental activity has on Adelene's AGI is $0.
b) The total rental income is less than the total expenses for the year, so the reportable rental income is $0.
Explanation:
a)
particulars amount amount
rental income $5,000
property taxes $3,800
mortgage interest $7,500
utilities $3,700
insurance $2,500
repairs $2,100
depreciation $15,000
total deduction $34,600
AGI $0
Therefore, The effect the rental activity has on Adelene's AGI is $0.
b)
particulars amount
Real property taxes $3,800
mortgage interest $7,500
utilities $3,700
insurance $2,500
repairs $2,100
depreciation $15,000
total expenses $34,600
Therefore, The total rental income is less than the total expenses for the year, so the reportable rental income is $0.
