Menlo Company distributes a single product. The company's sales and expenses for last month follow:
(d) Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.

Answers

Answer 1

The company's margin of safety in both dollar and percentage terms is $136,000 and 21.79% respectively.

The margin of safety is a company's sales over and above its break-even point are considered margin of safety.

Sales of a company that exceeds its break-even point generate profit.

The formula for Margin of safety(MoS) in dollars is as follows:

\(Margin Of Safety In Dollars = Actual Sales - BEP Sales\)

Substituting the provided values into the above calculation yields,

\(Margin Of Safety In Dollars = 624,000 - $488,000\)

= $136,000

To calculate the Margin of safety percentage we use the following formula:

\(Margin Of Safety Percentage = \frac{Margin Of Safety In Dollars}{Actual Sales} * 100\)

Substituting the provided values into the above calculation yields,

\(Margin Of Safety Percentage = \frac{136,000}{624,000} * 100\)                                          

= 21.79%

Hence, The company's margin of safety in both dollar and percentage terms is $136,000 and 21.79% respectively.

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Related Questions

you have $1,000 to invest. you can borrow or lend money on dollar-denominated accounts in the united states at an interest rate (effective annual rate) of 3.75%, while the interest rate in japan is 2%. the exchange rate today is 98 yen per dollar. if you believe that there are no arbitrage opportunities from moving money from one country to another, what must you believe will be the exchange rate one year from today? group of answer choices 94.62 yen per dollar 115.29 yen per dollar 96.35 yen per dollar 112.71 yen per dollar

Answers

If you believe that there are no arbitrage opportunities from moving money between the United States and Japan, you must believe that the exchange rate one year from today will be 94.62 yen per dollar.

In order to determine the expected exchange rate one year from today, we need to consider the interest rate differentials between the two countries. According to the information given, the interest rate in the United States is 3.75% and the interest rate in Japan is 2%. To prevent arbitrage opportunities, the expected exchange rate must reflect the interest rate differential. In this case, if investors can earn a higher interest rate by borrowing in the United States and converting to yen, they would do so until the expected exchange rate aligns with the interest rate differential.

To calculate the expected exchange rate, we can use the concept of covered interest rate parity. The formula for covered interest rate parity is: Expected Exchange Rate = Spot Exchange Rate * (1 + Foreign Interest Rate) / (1 + Domestic Interest Rate)

Plugging in the given values, the expected exchange rate is:

Expected Exchange Rate = 98 * (1 + 0.02) / (1 + 0.0375) ≈ 94.62 yen per dollar. Therefore, if there are no arbitrage opportunities, you must believe that the exchange rate one year from today will be approximately 94.62 yen per dollar.

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With respect to the anti-war demonstrators, Richard Nixon ________. Group of answer choices generally just ignored them secretly supported their objectives had very little sympathy for them ordered violent actions to be taken against them

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With respect to the anti-war demonstrators, Richard Nixon generally had very little sympathy for them. Nixon, who served as the 37th President of the United States from 1969 to 1974, faced significant opposition and protests against the Vietnam War during his presidency. However, he often displayed a dismissive attitude towards the anti-war demonstrators.

Nixon's stance on the Vietnam War was one of maintaining and eventually withdrawing American troops, rather than ending the conflict immediately. He believed that the anti-war movement was driven by a vocal minority and did not represent the broader sentiment of the American people. Nixon frequently portrayed the protesters as unpatriotic or misguided in their opposition to the war.

While it is not accurate to say that Nixon secretly supported the objectives of the anti-war demonstrators, his public statements and actions demonstrated his disdain for their cause. He did not actively engage with their concerns or attempt to address their grievances. Instead, his administration focused on strategies to discredit and marginalize the anti-war movement.

Although there were instances of violence between law enforcement and protesters during Nixon's presidency, there is no clear evidence to suggest that he specifically ordered violent actions against the anti-war demonstrators. However, his administration employed aggressive tactics to suppress dissents, such as surveillance and infiltration of protest groups, which further strained the relationship between the government and the anti-war movement.

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the profit mark-up is a percentage of the cost price which is added to the cost price in order to calculate the selling price.

true or false if false say why​

Answers

Answer:

true

Explanation:

Using a computer to forecast future sales and order more inventory before a shortage can occur is an example of information system feedback. True or false?.

Answers

It is incorrect to cite an instance of information system feedback as using a computer to predict upcoming sales and order more inventory before a shortage can happen.

A collection of interconnected parts that gather, process, store, and distribute information to aid in decision-making and control within an organization is known as an information system. Information systems can also be used to develop new products, visualize challenging concepts, and analyze issues.

Structured information systems that rely on computer hardware and software are known as computer-based information systems (CBIS). Information systems are used in an organization to support control and decision-making.

The three processes that an information system uses to create the information an organization needs are input, processing, and output.

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Your revenue is $353,522. Your Cost of Goods Sold are $124,555 and your Operating expenses are $170,124. What is your gross margin?

Answers

Answer:

$228,967

Explanation:

Gross margin or gross profit is the amount of money remaining after subtracting the cost of goods sold from net sales. The net sale is the actual Revenue after adjusting for discounts, returns, and damaged inventory.

Gross margin is calculated using the formula,

Gross margin = Revenue - costs of goods sold

In this case

Gross margin = $353,522- $124,555

Gross margin =$228,967

You receive an export order with the Incoterm FAS New York
Airport. How would you respond?

Answers

When an exporter receives an export order with the Incoterm FAS New York Airport, it is necessary to respond appropriately. In this case, the seller's responsibility ends when the goods are delivered to the FAS New York Airport.

Incoterms or International Commercial Terms are the standard trade terms used in international trade transactions. They dictate who bears the cost, risks, and responsibilities of transporting goods, as well as the point at which the goods are delivered from the seller to the buyer.

FAS stands for Free Alongside Ship, meaning the seller delivers the goods alongside the ship at the specified port of shipment. Therefore, FAS requires the exporter to deliver the goods, cleared for export, to a named port of shipment, usually a port terminal, within the country of origin.

The seller must be responsible for loading the goods onto the ship, clearing them for export, and delivering them to the buyer's carrier. Additionally, the seller must be responsible for all costs and risks until the goods have been delivered to the carrier specified by the buyer.

The exporter should provide the following information when responding to an export order with the Incoterm FAS New York Airport:

-Confirm acceptance of the order and the Incoterm FAS New York Airport.

-Provide shipping information, such as the date the goods will be delivered to the carrier at the named port of shipment

.-Advise the buyer about any additional documents required for shipment.-Provide information on the goods' weight and dimensions to assist in freight calculation.

-Ensure that the goods are delivered on time to the carrier's specified location at the port of shipment.

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Riku Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super Supreme Sales price $ 68 $ 94 Variable cost per unit (38 ) (44 ) Contribution margin per unit $ 30 $ 50 Riku expects to incur annual fixed costs of $540,000. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. Required Determine the total number of products (units of Super and Supreme combined) Riku must sell to break even. How many units each of Super and Supreme must Riku sell to break even?

Answers

Answer:

Super= 10,500

Supreme= 4,500

Explanation:

Giving the following information:

Spuer:

Contribution margin= $30

Sales proportion= 0.70

Supreme:

Contribution margin= $50

Sales proportion= 0.30

Fixed costs= $540,000

First, we need to calculate the break-even point in units for the whole company:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Break-even point (units)= 540,000 / (0.7*30 + 0.3*50)

Break-even point (units)= 15,000 units

Now, for each product:

Super= 15,000*0.7= 10,500

Supreme= 15,000*0.3= 4,500

1. Why is career education so important for teens?

Answers

Because in the future it will help you decide what you want to do

on july 1, year 5, lee co. sold goods in exchange for a $200,000, 8-month, noninterest-bearing note receivable. at the time of the sale, the note's market rate of interest was 12%. what amount did lee receive when it discounted the note at 10% on september 1, year 5?

Answers

The market interest rate on the note was 12% at the time of selling. The amount did lee receive when it discounted the note at 10% on September 1, year 5 is 190,000

Define rate of interest?

An interest rate tells you how high the cost of borrowing is, or high the rewards are for saving. So, if you're a borrower, the interest rate is the amount you are charged for borrowing money, shown as a percentage of the total amount of the loan. Rate of interest per year = R = 10% Time for which it is borrowed = T = 1 year. Thus, simple interest for a year, SI = (P × R ×T) / 100 = (10000 × 10 ×1) / 100 = Rs 1000. Amount that Rishav has to pay to the bank at the end of the year = Principal + Interest = 10000 + 1000 = Rs 11,000.

Here's the simple interest formula: Interest = P x R x T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).

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A group that sponsors bike helmet poster contests for children to promote bicycle safety is providing which marketing offering

Answers

Ideas is your answer

What does it mean when your bars disappeared on irs?.

Answers

When the bars disappear on the IRS website, it typically means that the status of your tax return or refund has changed.

The bars represent the progress of your return being processed and the status of your refund. The disappearance of the bars can indicate one of the following situations:

1. Return Accepted: If your bars disappeared shortly after filing your tax return, it may mean that the IRS has accepted your return and is now processing it. Once the return is processed, the bars may reappear with an updated status.

2. Return Rejected: If your bars disappear and you receive a rejection notice or communication from the IRS, it means that your tax return was not accepted due to errors or discrepancies. In this case, you would need to correct the issues and resubmit your return.

3. Return Processed: Sometimes, the bars may disappear once the IRS has completed processing your return and issued any applicable refunds or notices. This typically happens when your return has been finalized, and the processing stage is complete.

In any case, it is recommended to check for any notifications or correspondence from the IRS, as they may provide more specific information about the status of your tax return or refund. If you are unsure about the status or have further questions, it is advisable to contact the IRS directly for clarification.

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What is fiat money and why does it have value?

Answers

The answer is… Fiat money is a type of currency that has the value because it's backed by a type of government, not because it represents ownership of a physical good, such as shinning gold. Hope this helps!

which of the following individuals is permitted to present a short introductory presentation of educational content at the beginning of an informal marketing/sales event?

Answers

Based on Medicare and Medicaid services, the individual permitted to present a short introductory presentation of educational content at the beginning of an informal marketing/sales event is a Medicare Agent.

A medicare agent is responsible for conducting a short introduction of informal marketing or sales events.

This short introduction may include educational content about Medicare requirements, insurance, etc.

Hence, in this case, it is concluded that a medicare agent takes an active role in the marketing/sales event.

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PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST) PERSONAL & FAMILY FINANCE

Owen wants to start a tutoring business. He has a space rented and a lot of ideas, but he has no employees who can tutor the students. Which category of economic resource does he require?





labor





entrepreneurial ability





land

Answers

Answer:

entrepreneurial ability

Sorry, no one answered your question sooner, hope that helps.

labor <><><><><><><><><><><><>

Identify three likely affects of an increasing global population

Answers

Answer:

(1) effects of large families on child development, (2) educational problems, (3) lags in new technology, (4) increased inequities in agriculture, (5) unemployment and underemployment.

Explanation:

you can choose 3 from those.


Last week Sarah Carver worked 4 overtime hours at time-and-a-half pay. Her
regular pay rate is $8.70 per hour. What was her overtime
pay for the week

Answers

Answer:

34.80

Explanation:

8.70 times 4 is 34.80

Answer:

69.60

Explanation:

8.70 x0.5 = 17.4

17.4 is time and a half rate

17.4 x 4 = 69.60

4 is the hours she worked.

state any 5 tpyes of legal requirements that will be required to a business​

Answers

Advertising, marketing, finance, intellectual property, and privacy laws.

The history of bananas
Using at least two terms from the unit, summarize the United States’ connection to the history of bananas, as documented in this TED talk.

The history of bananasUsing at least two terms from the unit, summarize the United States connection

Answers

There was a U.S corporation called El Pupo that specialized in trafficking bananas. Bananas fist officially reached America in the early 1500’s. By the end of the 1800’s, bananas were a big hit in the U.S.

How was bananas shoot introduced to the US for cultivation?

Spanish explorers brought bananas to the Americas in the 1500s. The first banana shoot is thought to have been planted in the Caribbean islands in 1516. Bananas did not arrive in the United States until the 1800s, when sailors brought banana shoots back from the Caribbean.

Because fruit companies in the United States wanted to grow their own bananas, they bribed government officials to gain access to various lands. Rainforests were cleared, plantations were constructed, and the business grew from there.

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How can you justify paying the additional fees to start a franchise?

Answers

Answer: The initial franchise fee grants access to the franchisor's unique business systems and other benefits. You will receive the entire setup. The franchise fee is effectively a license to own and operate a franchise. As a result, you must pay it.

what steps must countries take to transition to a mixed-market economy?

Answers

Answer:

The steps that contries must take to transition to a mixed-market economy is by first establishing a fair labor market, discouraging all foreign investment and opening up trade to other countries.

How Social Media can Destroy Your Finances

Answers

Answer:

You buy unnecessary items that have no purpose later on, or you buy an over expensive item that you cant seem to pay back later on in other circumstances

which of the following is the primary behavioral principle responsible for the effectiveness of a response cost system?

Answers

a) Punishment is the primary behavioral principle responsible for the effectiveness of a response cost system.

In the field of business, punishment is an attribute that helps in making a cost system effective.

When the prices of products are inflated to such a level that people cannot afford it, then as a punishment people stop buying the products. This causes the company or government to face a loss in the economy.

Hence, punishment acts as a major behavioral principle that causes a system to be effective. Without it, economies might collapse.

Although a part of your question is missing, you might be referring to this question:

Which of the following is the primary behavioral principle responsible for the effectiveness of a response cost system?

a) punishment

b) positivity

c) noise

d) revenue

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How do Karissa and Marta differ in their reactions to the increase in the minimum wage?

Answers

The way that Karissa and Marta differ in their reactions to the increase in the minimum wage is that Karissa is happy to be able to save some money while Marta worries about either increasing her prices, or reducing her employees to meet the minimum wage.

How do employers and employees react to minimum wage increase?

Employees like Karissa are generally happy when there is an increase in the minimum wage because it means that they get access to more money for both spending and saving. In Karissa's case, she is happy that she will be able to have more of an earning to be able to save some more money.

Employers on the other hand, are generally conflicted about increases in the minimum wage. It means that they have to make a choice; they can either increase their prices to be able to make more money and pay the new minimum wage, or they would have to let some employees go and then use the savings on the laid - off employees to pay the new minimum wage. This is what Marta is suffering.

Full question:
Read the case study on Karissa and Martha and their thoughts on the increase in the minimum wage. Karissa is an employee while Martha is her employer.

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Your client purchases land that has been severely eroded. He plans to fill the holes caused by the erosion with waste material. Prepare a memorandum discussing any cost recovery deductions that can be claimed on this property.

Answers

Answer:

Dismantling cost is the expense which is caused when the asset is about to bring in its original state when it was not used.

Explanation:

To: Director Finance

From: Business Analyst

Subject: Cost recovery for dismantling

It is to bring into your knowledge that the land area near the plant was used by our company several years ago. The company has decided to sell it to one of our client. He has agreed to purchase the land but the erosion caused due to plant and manufacturing activities need to be restored. For this purpose we have decided to fill the erosion holes with waste material.

Your Kind approval is required for the process.

_____________________ shows who is responsible for specific project tasks, and also critical interfaces between units that may require managerial coordination

Group of answer choices

a. Work Breakdown Structure (OBS)

b. Organizational Breakdown Structure (OBS)

c. Project Management Plan

d. Assignment Matrix

Answers

The answer is d. Assignment Matrix. The assignment matrix, also known as a responsibility assignment matrix or RAM, is a tool used in project management to identify who is responsible for specific project tasks.

It provides a clear breakdown of the project tasks and assigns responsibility to individuals or groups within the organization. In addition to assigning responsibilities, the assignment matrix also identifies critical interfaces between units that may require managerial coordination. This means that it helps to identify areas where different parts of the project need to work together and ensures that there is effective coordination and communication between them.

For example, let's say a project involves designing a new product. The assignment matrix would list all the tasks involved in the design process, such as research, prototyping, and testing. It would then assign responsibility for each task to the appropriate individuals or groups, such as the research team or the design team. The matrix would also identify any critical interfaces between these units, such as the need for the research team to provide data and findings to the design team. This helps ensure that the project progresses smoothly and that all units work together towards a common goal.

The assignment matrix is a useful tool for identifying responsibilities in a project and coordinating the efforts of different units. It helps ensure that tasks are assigned to the right people and that there is effective coordination between different parts of the project.

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how much should the firm produce to maximize profit?b. calculate marginal revenue and marginal cost for each quantity. graph them. (hint: put the points between whole numbers. for example, the marginal cost between 2 and 3 should be graphed at 212.) at what quantity do these curves cross? how does this relate to your answer to part (a)?c. can you tell whether this firm is in a competitive industry? if so, can you tell whether the industry is in a long-run equilibrium?

Answers

The output that the firm needs to produce should be equal to the marginal cost and the marginal revenue to gain the maximum profit. The marginal revenue can be find by the operating cost of the market.

A company can maximize its cost by maintaining good relationship between the investors, shareholders and the prospective customers of the company. The profit can be maximized by the quality of goods and services that must have the positive relationship between the marginal cost  and marginal revenue of the company.

The firm has to maintain the quantity of production and also the output must be constant. For maximizing the profit the firm has to maintain the marginal cost, the marginal cost must nor increase more than the 25% to 30% of the operating expenses. The profit maximization is only possible when the labor cost and the management cost is decreased.

The marginal cost is calculated by the production of the cost in the product and the cost that is determined by the organization to the economic sales and the optimization in the production. The marginal cost must be calculated by the dividing the production cost with the the changes in the quantity.

The marginal revenue is calculated by the output that is measured in the company. It includes the revenue that is equal to the price sold to the item and the quality of the product that is sold. The marginal cost is the total revenue of the business that is earned by the company and it also shows the economy of the company.

The graph that represents the marginal cost and marginal revenue is directly proportionate that means if one quantity increases the other quantity also increases and if one quantity decreases the other quantity decreases. The point where both the marginal cost and the marginal revenue crosses is also called as the break even-point. The curve that represents the marginal revenue increases by the income that is gained and the marginal cost increases when the selling expenses increases in one unit.

The firm with high marginal cost has the strength to increase the competition. They also support in the long term run of the company that is in run of equilibrium of the company.

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a vendor-managed supply system relates to what customer service factor of a supply chain? multiple choice question. dependability communication time convenience

Answers

The customer service component of a supply chain is related to the time convenience of a vendor-managed supply system.

How does logistics management relate to customer service?

Customer service is the result of all logistics procedures or supply chain operations, from the perspective of logistics. The earnings for the business are determined by the corresponding costs for the logistics system and the income generated by logistics services.

Customer, supply chain, and corporate data are sources for business software (CRM, SCM, and ERP).

What marketing channel enables customers to purchase things through multiple interactions?

The consumer can purchase and receive products directly from the manufacturer through a direct distribution channel. A number of middlemen are used in an indirect route to deliver items from the manufacturer to the customer.

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True or false: Corporate Social Responsibility (CSR) and corporate profits can at times go hand in hand.
True false question.
True
False

Answers

Answer:

TRUE

Explanation:

I think that answer

g xyz corp expects to earn $4.0 per share next year and plow back 37.5% of its earnings (i.e., it expects to pay out a dividend of $2.5 per share, representing 62.5% of its earnings). the dividends are expected to grow at a constant sustainable growth rate and the stocks are currently priced at $30 per share. how much of the stock's $30 price is reflected in present value of growth opportunities (pvgo) if the investors' required rate of return is 20%?

Answers

The present value of growth opportunities (PVGO) for g xyz corp's stock is $10.

To calculate the PVGO, we first need to find the stock's dividend discount model (DDM) value. Here's a step-by-step explanation:
1. Calculate the dividend in the next year (D1): Since the company expects to pay a dividend of $2.5 per share, D1 = $2.5.
2. Determine the required rate of return (r): The investors' required rate of return is given as 20% (0.2).
3. Calculate the sustainable growth rate (g): The company plows back 37.5% of its earnings. The payout ratio is 62.5% (1 - 37.5%). With earnings per share (EPS) of $4.0, the growth rate (g) = EPS × retention ratio = $4 × 37.5% = $1.5.
4. Find the DDM value (P0): Using the Gordon Growth Model, P0 = D1 / (r - g) = $2.5 / (0.2 - 0.0375) = $2.5 / 0.1625 = $15.385.
5. Calculate the PVGO: Subtract the DDM value from the stock's current price: PVGO = $30 - $15.385 ≈ $10.

Thus, $10 of the stock's $30 price is reflected in the present value of growth opportunities.

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The cost of campaigning requires candidates to conduct extensive
activities.
O community service
O fund-raising
O illegal
O campaigning

Answers

Answer:

fund-raising

Explanation:

Running for a political office is an expensive affair. The candidate and political party require a lot of money to run a successful campaign. To raise funds needed to conduct campaigns, political parties and candidates organize fundraising activities and events.

Community service and campaigning are good platforms to woe voters but cannot generate funds to run for a political office.

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