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bekas [8.4K]
2 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]2 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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According to the "adapting to change" box, which professional is best able to detect the financial irregularities that often acc
lutik1710 [3]

According to the "adapting to change" box, the professional that is best able to detect the financial irregularities that often accompany fraud in an organization is Control process.

<h3>What is control process?</h3>

Controlling involves assessing the performance of a company and modifying the financial performance.

This is done for credibility and to meet the company's objectives, goals and plans.

Control process serves as yardstick to which the goal of business or company is achieved. Managers of company engage in control process.

Therefore, According to the "adapting to change" box, The professional that is best able to detect the financial irregularities that often accompany fraud in an organization is Control process.

Learn more on control process below

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7 0
1 year ago
Consider a bank that has the following balance sheet: Liabiiiies Reserves $200 Deposits $960 Loans $800 Equity $40 Suppose some
Andru [333]

Answer:

d) The value of equity is $0

Explanation:

Bank loans are classified as performing and nonperforming loans. Nonperforming loans that stay for over a long period (usually 12 months) are considered to be a loss.

When a bank makes a loss on loans (loan goes bad due to nonrepayment) they make provisions and debit the business equity for the loss.

The given loan amount is $800 and the bank had to provision 5% of that amount.

Loss from loan= 800* 0.05= $40

This is deducted from equity= 40- 40= $0

7 0
3 years ago
If Ming wants a tertiary color, she should combine
Dimas [21]

red and orange because tertiary colors are combinations with primary and secondary colours.




4 0
2 years ago
Read 2 more answers
:How is a ‘provision for reserve’ in a balance sheet, a liability or an asset. Explain.
Maslowich

Explanation:

A provision is indeed an item freed up from either a company's revenue to cover potential future costs or a probable property price decrease. It shows up as spending on the financial statements and is documented as a current liabilities.

3 0
2 years ago
Refer to the following table to answer the following questions:
sineoko [7]

Answer:

Following are the answer to this question:

In question first, the answer is "Option d".

In question second, the answer is "Option e".

In question third, the answer is "Option e".

In question fourth, the answer is "Option e ".

In question fifth, the answer is "Option b".

Explanation:

Given values:

Checkable \ deposits =  \$ 400,000,000\\Currency = \$ 340,000,000\\Traveler's \ checks = \$ 4,000,000\\Money \ market \ mutual \ funds = \$ 50,000,000\\Small \ time \ deposits = \$ 6,000,000\\Savings \ deposits = \$ 850,000,000\\

Solution:

  • \text{M1= currency +checkable deposits + travellers check}

    = $400000000+$340000000+$4000000

    = $744000000

\bold{\text{M2 = M1 +money market mutual funds + small time deposit+ saving deposit}}

      =  $744000000 + $50000000+$6000000+$850000000

       = $1,650,000,000

  • Saving account deposits, which means its amount of money increased throughout the M2 portion regular savings account. So M2 will grow  
  • Its increase in the number of employees may not impact the balance sheet with banks, because each bank maintains its entire cash flow
  • For banks, loans are investments if they're lending money as a bank to people. So, it's on income statement asset side
3 0
3 years ago
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