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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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Future Clothes Inc., a publicly-traded company, designs and manufactures wearable technology. What approach should Future Clothe
yarga [219]

The correct answer would be, Focus on research and development as a form of non-price competition.

Future clothes Inc., a publicly traded company, designs and manufactures wearable technology. Future Clothes should Focus on research and development as a form of non-price competition.

Explanation:

When a company increases its production of goods or services at the same part of the supply chain, this expansion is called as the horizontal integration. Horizontal integration is achieved through increasing production of goods or services through Mergers, acquisitions, internal expansions, etc.

So when Future Clothes have a long period of horizontal integration in the industry, they should now focus on Research and Development in its related products or services as a form of non price competition.

Learn more about Horizontal Integration at:

brainly.com/question/1928970

#LearnWithBrainly

8 0
3 years ago
Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has ​$8 comma 000 for h
Marizza181 [45]

Answer:

A = P * (1 + r/n)^nt. Where A = Maturity amount = ? P = Principal amount = $8,000, r = Rate of interest = 6%, n = Number of compounding per year = 1, t = Number of year

a. t = 2

A = $8,000 * (1 + 0.06/1)^1*2

A = $8,000 * (1.06)^2

A = $8,000 * 1.1236

A = $8,988.80

b. t = 6

A = $8,000 * (1 + 0.06/1)^1*6

A = $8,000 * (1.06)^6

A = $8,000 * 1.418519

A = 11348.152

A = $11,348.15

c. t = 10

A = $8,000 * (1 + 0.06/1)^1*10

A = $8,000 * (1.06)^10

A = $8,000 * 1.7908477

A = 14326.7816

A = $14,326.78

d. t = 15

A = $8,000 * (1 + 0.06/1)^1*15

A = $8,000 * (1.06)^15

A = $8,000 * 2.3965581931

A = 19172.4655448

A = $19,172.47

3 0
2 years ago
Information concerning the unexpected resignation of one or more of the registrant's directors would be disclosed on which of th
labwork [276]

Answer: Form 8-K

Explanation:

An 8-K is a report the corporate changes that happens at an organization. The information given in form 8-K is important to the shareholders of the organization and also to the Securities and Exchange Commission.

Events such as bankruptcy, acquisitions, resignation of directors can all be seen in the report.

7 0
3 years ago
Indigo Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the fir
Tema [17]

Answer and Explanation:

a. The journal entries are shown below:                    

On Feb 1

Cash Dr $2,782,000  (53,500 shares × $52)

      To Preferred stock  $2,675,000    (53,500 shares × $50)

      To Paid in capital in excess of par - Preferred stock  $107,000

(Being the issuance of the preferred stock is recorded)

On July 1

Cash Dr $4,018,500  (70,500 shares × $57)

      To Preferred stock  $3,525,000    (70,500 shares × $50)

      To Paid in capital in excess of par - Preferred stock  $493,500

(Being the issuance of the preferred stock is recorded)

For recording these both transactions we debited the cash as it increased the assets and credited the preferred stock and additional paid in capital as it also increased the stockholder equity

b. The posting is as follows

                                     Preferred Stock

Date                               Debit               Date               Credit

                                                                       1-Feb $2,675,000  

                                                                         1-Jul $3,525,000

                            Paid in capital in excess of par - Preferred stock

Date                                Debit          Date           Credit

                                                                        1-Feb      $107,000

                                                                         1-Jul       $493,500

c. Now the presentation is shown below:

Preferred stock, $50 par value, 124,000 issued and outstanding - $6,200,000

Paid in capital in excess of par - Preferred stock - $600,500

It is presented on the stockholder equity statement

3 0
3 years ago
You have just won the lottery and will receive $460,000 in one year. You will receive payments for 27 years, and the payments wi
Zepler [3.9K]

Answer:

The present Value of my winnings = $4,578,716.35

Explanation:

An annuity is a series od annual cash outflows or inflows which payable or receivable for a certain number of periods. If the annual cash flow is expected  to increase by a certain percentage yearly, it is called a growing annuity.

To work out the the present value of a growing annuity,

we the formula:

PV = A/(r-g) ×  (1-  (1+g/1+r)^n)

I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity (winnings) as follows.

A/(r-g)

= 460,000/(12%-3%)

= $5,111,111.11

(1-  (1+g/1+r)^n

1 - (1+3%)/(1+12%)^(27)

=0.8958

PV = A/(r-g) ×  (1-  (1+g/1+r)^n)

$5,111,111.11 × $0.8958

= $4,578,716.35

The present Value of my winnings = $4,578,716.35

5 0
3 years ago
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