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pickupchik [31]
3 years ago
6

The margin of safety ratio is computed as actual sales divided by break-even sales. is used to determine the break-even point. i

ndicates what percent decline in sales could be sustained before the company would operate at a loss. measures the ratio of fixed costs to variable costs.
Business
1 answer:
max2010maxim [7]3 years ago
8 0

Answer:

indicates what percent decline in sales could be sustained before the company would operate at a loss.

Explanation:

Since, Margin of safety ratio = Expected Sales - Break even sales

therefore,

The correct statement is : The margin of safety ratio indicates what percent decline in sales could be sustained before the company would operate at a loss.

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Bark Company is considering buying a machine for $240,000 with an estimated life of ten years and no salvage value. The straight
cupoosta [38]

Answer:

option (c) 8 years

Explanation:

Data provided in the question:

Cost of the machine = $240,000

Useful life = 10 years

Salvage value = 0

Net income = $6,000 each year

Now,

Using the straight-line method of depreciation

Annual depreciation = [ Cost - Salvage value ] ÷ Useful life

= [ $240,000 - 0 ] ÷ 10

= $24,000

Thus,

Cash flow = $6,000 + $24,000

= $30,000

Therefore,

The payback period = ( Cost ) ÷ ( Cash flow )

= $240,000 ÷ $30,000

= 8 years

Hence,

the correct answer is option (c) 8 years

3 0
3 years ago
In a closed economy, what remains after paying for consumption and government purchases is:________
natta225 [31]

Answer: d. national saving.

Explanation:

In a closed economy, GDP is calculated by adding Consumption, Investment and Government purchases. The investment in this instance can be thought of as National Saving.

National saving is the difference between the income in the country and the consumption and government purchases. It represent what households and the government save up from their income sources which can be used for investment.

5 0
3 years ago
Mutual savings banks are primarily regulated by
ziro4ka [17]

Mutual savings banks are primarily regulated by the states in which they are located.

 

<span>To add, a </span>mutual savings bank<span> is a financial institution chartered by a central or regional government, without capital stock, that is owned by its members who subscribe to a common fund. From this fund claims, loans, etc., are paid. Profits after deductions are shared among the members.</span>

5 0
2 years ago
Multiple Choice Question Mahan Corporation expects total sales to increase by 20% over the next year. The corporation has no spa
AlekseyPX

Answer:

$48,000

Explanation:

The computation of the corporation debt is shown below:

Since the asset is increased by 20%

The present asset is $100,000

ANd, the increased assets is

= $100,000 + $100,000 × 0.20

= $100,000 + $20,000

= $120,000

Now the debt is

= $120,000 × 0.4

= $48,000

hence, the last option is correct

3 0
2 years ago
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. The total value of yo
diamong [38]

Answer:

hope this helps

Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 21.5% and a beta of 1.70. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock? Do not round your intermediate calculations.

Old portfolio return

11.0%

Old portfolio beta

1.20

New stock return

21.5%

New stock beta

1.70

% of portfolio in new stock = $ in New / ($ in old + $ in new) = $10,000/$100,000=

10%

New expected portfolio return = rp = 0.1 × 21.5% + 0.9 × 11% =

12.05%​

New expected portfolio beta = bp = 0.1 × 1.70 + 0.9 × 1.20 =

1.25​

Explanation:

7 0
2 years ago
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