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bekas [8.4K]
3 years ago
7

Shambo Corporation has provided the following contribution format income statement. Assume that the following information is wit

hin the relevant range. Sales (3,000 units) $ 60,000 Variable expenses 42,000 Contribution margin 18,000 Fixed expenses 13,200 Net operating income $ 4,800 The margin of safety percentage is closest to:
Business
1 answer:
morpeh [17]3 years ago
5 0

Answer:

26.66 or 27%

Explanation:

The computation of the margin of safety percentage is shown below:

Margin of Safety

= 100 - Break Even %

= 100 - 73.33

= 26.66 or 27%

Working Note

Sales (3,000 units) $60,000

Less: Variable expenses -$42,000

Contribution margin -$18,000

CM Ratio (A) 30.00%

Fixed expenses (B) 13,200

Break Even Point C = B ÷ A 44,000

Break Even % of Total Sale 73.33%

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adoni [48]

Answer: D) not been recorded and unearned revenues have.

Explanation:

Accrued revenue is a term used to describe a sale that has been recognized by the seller, but which has not yet been billed to the customer. Accrued revenue is needed in order to match revenues with expenses. The absence of accrued revenue would tend to show excessively low initial revenue levels and low profits for a business, which does not properly indicate the true value of the organization.

Unearned revenue on the other hand is the money received from a customer for work that has not yet been performed (in advance payment). This is an advantage to the seller who now has the cash to perform the required services. Unearned revenue is a liability for the recipient of the payment.

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3 years ago
What courses does ojt have like eg welding, it have any more​
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Answer:

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8 0
3 years ago
Brand loyalty can be created by: a. minimal advertising. b. not using patents to protect products. c. cutting the costs for rese
vesna_86 [32]

Answer:

Option d is the correct option.

Explanation:

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For creation of brand loyalty, we have to offer our customers something extra that our competitors are unable to deliver.

7 0
3 years ago
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Inez was content with her job at Pieces Packaging until the company added two levels of supervision, lowered bonuses, and decrea
nasty-shy [4]

Answer:

hygiene

Explanation:

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I hope you find this information useful and interetsing! Good luck!

3 0
3 years ago
if the company chooses the lease option, it will have to pay an immediate deposit of 25000 to cover any future damages to the eq
Likurg_2 [28]

Answer:

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