To find the margin of safety in dollars, subtract the breakeven sales from the budged or actual sales.
Current sales are 41,800 units
Break even point in units is 33,900
Cost per unit is $170
(33,900)($170) = $5,763,000
(41,800)($170) = $7,106,000
The margin of safety in dollars is:
$7,106,000 - $5,763,000 = $1,343,000
Answer:
$15000
Explanation:
All types of bonds have some common characteristics which include;
- A face/par value
- A coupon rate (interest rate).
- Either redeemable/irredeemable or convertible.
The face value of one bond is $1000 so the total value of 300 bonds would be $300,000 (300×$1000). In this example these are redeemable bonds which means Whitefeather Industries would be liable to payback the capital amount of bonds after five years (maturity date).
The coupon rate (i.e interest) is charged on Par value. So the Interest can be calculated as $300,000×10% = $30,000 per year.
In this question interest is payable semi-annually, therefore The amount of interest that occurs on December 31, 2017 is $15000 (For the last six months - July 1st till Dec 31st; $30000×6÷12).
Answer:
some goods aren't internationally traded
Explanation:
Purchasing power parity is most popularly known as the PPP. It may be defined as the measure of the prices of the various countries which makes use of the price of some specific goods in order to compare the absolute purchasing capability or power for the countries' currencies.
It is used to measure and compare prices at different locations.
The purchasing power does not hold good in the short to the medium run as different countries produces different goods and as such all the goods are not internally traded all over the locations or countries.
Answer:
10.67%
Explanation:
For computing the change in ROE first we have to find out the debt and equity values which are shown below:
The debt value = Total invested capital × debt rate
= $195,000 × 37.5%
= $73,125
And, the equity value = Total assets - debt value
= $195,000 - $73,125
= $121,875
Now we apply the Return on Equity formula which is presented below:
= (Net income ÷ Total equity) × 100
The net income is $20,000 and the equity value would remain the same
So, the ratio would be = ($20,000 ÷ $121,875) × 100 = 16.41%
And if the net income raise to $33,000
Then the new ROE would be = ($33,000 ÷ $121,875) × 100 = 27.07%
So, the change in ROE
= New ROE - Old ROE
= 27.07% - $16.41%
= 10.67%
A warrant
(Hope that helped)
