Light Me Up Lamps has variable expenses of 40​% of sales and monthly fixed expenses of . The monthly target operating income is . What is Light Me Up​ Lamps' operating leverage factor at the target level of operating​ income?

Answers

Answer 1

Answer: B. 3.25

Explanation:

Operating Leverage enables a company know how much their income will increase by if they manage to increase their revenue.

The formula is;

= Contribution Margin / Net Income

[tex]\frac{Fixed Costs + Net Income}{ Net Income} \\= \frac{80,000 + 180,000}{80,000} \\= 3.25[/tex]

= 3.25


Related Questions

A company’s book value increases when a company retains its net income.
a) true
b) false

Answers

The answer to your question is true.

When screening employees for employment to guard sensitive assets,the screener should look for employment data from the following areas:________
a) Former employers
b) State and local police
c) Schools
d) Television producers

Answers

Answer:

When screening employees for employment to guard sensitive assets,the screener should look for employment data from the following areas:________

a) Former employers

Explanation:

Former employers remain the best source of employment data when screening employees for employment.  It is believed that past performances always influence future performances.  As a result, former employers of any worker should be in position to provide sensitive information about the new employee.  However, there is the need to adhere to data privacy by ensuring that the employee consents to the enquiry into his or her past.

Pepci co. is issuing a $1,000 par value bond that pays 7 percent annual coupon and mature in 15 years. Investors are expected to pay $925 for the bond. The company is in a 40 percent tax bracket. What will be the firm’s after tax cost of debt?

Answers

Answer:

1,678660

Explanation:

Bramble Corp. can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $58 and takes two machine hours to make and Fancy has a unit contribution margin of $57 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Bramble do?

Answers

Answer:

plain makes a profit of $10

Explanation:

The computation is shown below:

Particulars                              Plain            fancy

Unit contribution margin        $58            $57

Machine hours                         2               3

Contribution margin

per machine hour                  $29               $19

                                ($58 ÷ 2)               ($57 ÷3)

As we can see that the plain makes a profit of $10 that comes from

= $29 - $19

= $10

Next to each item, indicate whether it would most likely be reported on the balance sheet (B), the income statement (1), or the statement of stockholders' equity (SE) Choose
a. Cash (year end balance)
b. Advertising expense
c. Common stock
d. Printing fees earned B, T
e. Dividends
f. Accounts payable
g. Inventory>
h. Equipment

Answers

Answer:

a. balance sheet (B)

b. income statement (1)

c. statement of stockholders' equity (SE)

d. income statement (1)

e. statement of stockholders' equity (SE)

f. balance sheet (B

g.balance sheet (B

h.balance sheet (B

Explanation:

The Balance Sheet consists of balances in the Asset , Liabilities and Equity Accounts and it uses the equation Assets = Equity + Liability.It shows the result as at the end of the Financial Period.

The Income statement comprises of Revenues or Incomes and Expenses. The profit or loss resulting from operation during the financial period is the the end goal of this financial statement.

The  statement of stockholders' equity (SE) shows the interest of the owners of the company and any distributions out of profit that has been made to them during the year.

In Celia's company, employees enroll each year for the set of benefits that makes the most sense for their individual needs. This is referred to as a(n) _______ plan. affordable benefit government-mandated customized benefit collective bargaining cafeteria-style

Answers

Answer: Customized benefit

Explanation:

With a Customized Benefit plan, the company is able to pick which benefits to wants to offer it's employees. This enables them to even allow employees choose the set of benefits that makes the most sense for their individual needs thereby creating a personal flexible plan like in Celia's company.

The benefit of this is that your plan will not be full of products that are irrelevant to your health thereby giving the person more value for their money.

You wish to retire after 20 years; at which time you want to have accumulated enough money to receive an annuity of $60,000 a year for 25 years of retirement. During the period before retirement you can earn 4 percent annually, while after retirement you can earn 3 percent on your money. What annual contribution to the retirement fund will allow you to receive the 60,000 annually?

Answers

Answer:

$35,085.63

Explanation:

we must first calculate the amount of money that you need to receive $60,000 in annual distributions during 25 years. We must use the present value of an annuity formula:

PV = annuity payment x annuity factor

annuity payment = $60,000

annuity factor (3%, 25 periods) = 17.413

PV = $60,000 x 17.413 = $1,044,780

this means that you will need to save $1,044,780 in the remaining 20 years. The annual contribution can be calculated using the future value of an annuity formula:

FV = annuity payment x annuity factor

Fv = $1,044,780

annuity factor (4%, 20 periods) = 29.778

annuity payment = FV / annuity factor = $1,044,780 / 29.778 = $35,085.63

Before deciding on a pricing strategy, Wallmart consults with a strategy team to understand what discounts the Doormart is offering. The model that BEST fits this industry is:

Answers

Answer:

oligopoly

Explanation:

The model that best fits this industry would be an oligopoly. This is a market or industry which is dominated by a small group of very large companies/sellers. In this model, the few companies involved are in direct competition with one another and focus solely on outpricing one another in order to gain a competitive edge. Which is what Wallmart is trying to accomplish by understanding the discounts being offered by Doormart.

The shareholders' equity of Green Corporation includes $332,000 of $1 par common stock and $520,000 par of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $62,000 in 2021 after paying $32,000 cash dividends in each of 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021

Answers

Answer:

$16,800

Explanation:

The computation of the amount of dividends common shareholders will receive in 2021 is shown below:-

Dividends per year for preferred stock = Par value × Cumulative preferred stock

= $520,000 × 7%

= $36,400

So, dividends in arrears for preferred stock for years is

For 2017 = Dividends per year for preferred stock - Cash dividend

= $36,400 - $32,000

= $4,400

For 2018 = For 2017 + (Dividends per year for preferred stock - Cash dividend)

= $4,400 + ($36,400 - $32,000)

= $8,800

Total dividends to be paid to preferred stockholders = For 2018 + Dividends per year for preferred stock

= $8,800 + $36,400

= $45,200

Finally

Dividends for common stockholders = Declared Cash Dividend - Total dividends to be paid to preferred stockholders

= $62,000 - $45,200

= $16,800

Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below: Activity level 80 guests Variable overhead costs: Supplies $ 144.00 Laundry 600.00 Fixed overhead costs: Utilities 444.00 Salaries and wages 5,120.00 Depreciation 2,900.00 Total overhead cost $ 9,208.00 The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 70 guests

Answers

Answer: $9,115‬

Explanation:

Total budgeted overhead cost =Variable Costs + Overhead costs

The variable costs listed are for an activity level of 80 guests but 70 guests will be coming.

The variable costs will be;

Supplies

= (144 / 80) * 70

= $126

Laundry

= ( 600/80 ) * 70

= $525

The rest are fixed costs so will stay the same regardless of activity level.

Total budgeted overhead cost = 126 + 525 + 444 + 5,120 + 2,900

= $9,115‬

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,980 hours and the total estimated manufacturing overhead was $540,708. At the end of the year, actual direct labor-hours for the year were 21,950 hours and the actual manufacturing overhead for the year was $540,708. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)

Answers

Answer:

$738 Under applied

Explanation:

Calculation for Overhead at the end of the year

First step is to calculate for the POR using this formula

POR=Total estimated manufacturing overhead/Estimated direct labor-hours

Let plug in the formula

POR=$540,708/21,980 hours

POR=$24.6/DLH

Second step is to Calculate for the applied Overhead using this formula

Applied overhead =Actual direct labor-hours ×POR

Let plug in the formula

Applied overhead =21,950 hours×$24.6/DLH

Applied overhead=$539,970

The last step is to for the Overhead at the end of the year

Using this formula

Ending Overhead =Actual manufacturing overhead -Applied overhead

Let plug in the formula

Ending overhead =$540,708-$539,970

Ending overhead=$738 Under applied

Therefore the Overhead at the end of the year will be $738 Under applied due to the debit balance.

A cost center is a unit of a business that incurs costs but does not directly generate revenues. Which of the following would definitely not be considered a cost center?A. Accounting department.B. Purchasing department.C. Research departmentD. Advertising department.E. All of these could be considered cost centers.

Answers

Answer:

E. All of these could be considered cost centers.

Explanation:

A cost center is a unit of a business that incurs costs but does not directly generate revenues. Generally, cost center in an organization is typically saddled with the responsibility of controlling and allocation of costs but not the generation of revenues like a profit center such as sales department.

Hence, the following departments would definitely be considered a cost center;

A. Accounting department.

B. Purchasing department.

C. Research department

D. Advertising department.

Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $297,000, total variable expenses were $222,750, and fixed expenses were $36,900.Required:
1. What is the companyâs contribution margin (CM) ratio?
2. Estimate the change in the companyâs net operating income if it were to increase its total sales by $1,800.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Sales in units= 42,000

Total sales= $297,000

Total variable expenses= $222,750

Total fixed expenses= $36,900

To calculate the contribution margin ratio, we need to use the following formula:

contribution margin ratio= (sales - total variable cost) / sales

contribution margin ratio= (297,000 - 222,750) / 297,000

contribution margin ratio= 0.25

Now, the effect on the income of an increase in sales:

Effect on income= contribution margin ratio*increase in sales

Effect on income= 0.25*1,800

Effect on income= $450 increase

Foxhound Capital, LLC has the following being reported on the financial statements on December 31, 2014: Sales $120,000; Total Expenses $98,000; Net Income $22,000; Interest Expense $2,174; Income Tax $4,000. Calculate the time interest earned ratio (round to the nearest whole number).

Answers

Answer:

13%

Explanation:

We can calculate the time interest earned ratio by dividing the income before interest and tax with total interest expense

DATA

Net income  = 22,000

Interest expense = 2,174

Tax = 4,000

Calculation

Income before interest and tax = 22,000 + 2,174 + 4,000

Income before interest and tax = 28,174

Interest earned ratio = Income before interest and tax / Interest expense

Interest earned ratio = 28,174 / 2,174

Interest earned ratio = 12.95 or 13%

27. Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be

Answers

The question is incomplete. The complete question is,

Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be  

Year       Dividend

1        $1.20

2         1.44

3        1.73

4         2.07

After this initial period of super growth, the rate of increase in the dividend should decline to 8 percent. If you want to earn 12 percent on investments in common stock, what is the maximum you should pay for this stock?

Answer:

The maximum that should be paid for the stock today is $40.29

Explanation:

We will use the two stage dividend growth model of DDM to calculate the price of the stock today. The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price under the two stage model is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2 + ... + Dn / (1+r)^n  +  [Dn * (1+g2) / (r - g2)] / (1+r)^n

P0 = 1.2 / (1+0.12)  +  1.44 / (1+0.12)^2  +  1.73 / (1+0.12)^3  +  2.07 * (1+0.12)^4  +  

[2.07 * (1+0.08) / (0.12 - 0.08)] / (1+0.12)^4

P0 = $40.2853 rounded off to $40.29

Prepare an amortization schedule for a five-year loan of $67,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments.

Answers

Answer:

Amortization schedule for a five-year loan

Year 1

Principle $11,195.19

Interest   $6,030.00

Balance  $55,804.81

Year 2

Principle $12,202.76

Interest   $5,022.43

Balance  $43,602.04

Year 3

Principle $13,301.01

Interest   $3,924.18

Balance  $30,301.03

Year 4

Principle $14,498.10

Interest   $2,727.09

Balance  $15,802.93

Year 5

Principle $15,802.93

Interest   $1,422.26

Balance  $0.00

Explanation:

First Calculate the equal annual payments, Pmt of the loan as follows :

Pv =  $67,000

n = 5

r = 9.00 %

p/yr = 1

Fv = $ 0

Pmt = ?

Using a financial calculator, the  equal annual payments, Pmt is - $17,255.19

Then Construct the amortization schedule :

This can be obtained from a financial calculator as SHIFT AMORT

List some forms of political risk other than a takeover of a subsidiary by the host government, and briefly elaborate on how each factor can affect the risk to the MNC.Identify common financial factors for an MNC to consider when assessing country risk. Briefly elaborate on how each factor can affect the risk to the MNC.

Answers

Answer with Explanation:

The political risk are the risk that the investors and corporation bears who are affected by the political decisions of government. The adverse impact of political decision making is reduction in earnings, abandoning of operations, government interventions, etc.

Here are some of the political risks that has adverse impact on the operations of Multinational Corporations:

Blocked funds will result in loosing potential investments in other countries due to shortage of fund created by the blockage in movement of funds from one country to other. This blockage is as a result of regulations passed to restrict the use of money generated in a country.Changing tax laws will result in the decrease in earnings for the shareholders and retained earnings for the corporationsPublic revolt against the firm which was to abandon the use of fair treatment like in the case of PIA-Pakistan International Airlines. The company is struggling to lower its losses by rewarding the right person and firing employees who are working as per set standards. The employees has revolted against the firm which has severe impact on the share value in the stock market. The revolt continued for the whole month.Changing Interest rates would result in increase in interest cost to MNC which is also because of government interventions.Attitude of the host government towards MNC is political risk if the host government is willing to tighten controls which includes environmental related regulations, worker's right act, etc. This would increase the cost to the multinational corporations.Corruption and rule of Law effect the most to the corporations because the fraudulent activities can not be stopped if there is no rule of law. It also depends on how long does a legal case takes to be resolved.

The Financial factors includes inflation rate, Exchange rate, GDP growth rate, interest rates, electricity cost, corporation taxes, labor costs, industry specific policies, etc. These factors can result in acceptance or rejections of projects in the country because these are the main financial factors that has tendency to alter the decision of the investors and corporations.

Corporation Taxes and interest rates are discussed above.All the cost related items which includes electricity costs, inflation rates, labor costs, etc are very important element as they are almost more than 50% of total cost of the project. Hence these are the financial factors that has immense importance when assessing country risks and considering potential investment opportunities.Exchange rate are another important element that helps in assessing the country risk of the company. If the investment was profitable but the currency deflated against the MNC's home country then it was not a good decision. The exchange rate fluctuations will also be an important financial factor while making business decisions.GDP growth rate is also one of the significant factor to consider because significant investment value grows if the Gross Domestic Production is growing with great pace and vice versa.

At Bargain Electronics, it costs $29 per unit ($15 variable and $14 fixed) to make an MP3 player at full capacity that normally sells for $40. A foreign wholesaler offers to buy 3,200 units at $28 each. Bargain Electronics will incur special shipping costs of $2 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Accept Net Income Order Order Increase (Decrease)Revenues $ $ $Costs-Manufacturing ShippingNet income $ $ $The special order should be rejected accepted.

Answers

Answer:

Bargain Electronics would realize Net Income of $35,200 by accepting the special order.

Decision : The special order should be accepted.

Explanation:

Analysis of net income effect of accepting the special order

Sales ( 3,200 units × $28)                   $89,600

Less Expenses :

Variable ( 3,200 units × $15)             ($48,000)

Shipping Costs ($2 × 3,200 units )     ($6,400)

Incremental Income / (loss)                $35,200

Note that, the fixed costs are irrelevant for this decision. This is because they will remain the same whether or not the special order is accepted.

Which UL rating and surge suppressor grade would be best when ordering new surge strips for a small business?

Answers

Answer:

Class A

-UL 1449

Explanation:

In simple words, Class A chemical compounds have a fire spreading ranking between null and 25. Such products are safe toward extreme exposure to flames. Class B flame resistant get a flame range ranking about 26 and 75. Fully Differential products have a fire distribution level of more than 500.

UL 1449 relates to the Safety Standard besides Survey resistant Devices (SPD) for bureau . Surge is a sudden rise in currents and voltages which can happen along AC or DC electrical loads and can affect the equipment connected to such circuits.

Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance. Old Equipment Cash Book Value Fair Value Received Equipment A $ 74,100 $ 81,600 $ 11,100 Equipment B $ 61,900 $ 55,600 $ 10,000 For Equipment B, Pensacola would record a gain/(loss) of:

Answers

Answer:

Loss of 6300

Explanation:

Give the following :

Equipment - -- B/Val - - F/Value - - cash Received Equipment A - - 74,100 - - 81,600 - - 11,100 Equipment B - - 61,900 - - 55,600 - - 10,000

Book value of equipment B = 61,900

Loss / gain :

(Fair value - book value ) = (55,600 - 61,900)

Loss / gain = - 6,300

Loss = (6300)

A flexible budget is based on a single predicted amount of sales or other activity measure.
a) true
b) false

Answers

Answer:

The answer is false

Explanation:

A flexible budget is a budget that changes with the level of volumes or revenue. It is not a single predicted amount of sales like fixed budget but a numerous budgets prepared for different levels of activities.

One of the advantages is that it is a goods metric to measure manager's

performance.

And one of the advantages is that it is complex to prepare.

synovec co. is growing quickly. dividends are expected to grow at a rate of 30 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 11 percent, and the company just paid a dividend 2.8, what is the current share price?

Answers

Answer:

P0 = $90.3328 rounded off to $90.33

Explanation:

The two stage growth model of DDM can be used to calculate the price of the share today. The DDM values a stock based on the present value of the expected future dividends from the stock. The price of this stock under this model can be calculated as follows,

P0 = D0 * (1+g1) / (1+r) +  D0 * (1+g1)^2 / (1+r)^2  +  D0 * (1+g1)^3 / (1+r)^3

+  [ (D0 * (1+g1)^3 * (1+g2) / (r - g2)) / (1+r)^3 ]

Where,

g1 is the initial growth rate which is 30% g2 is the constant growth rate which is 5% r is the required rate of return

P0 = 2.8 * (1+0.3) / (1+0.11)  +  2.8 * (1+0.3)^2 / (1+0.11)^2  +  

2.8 * (1+0.3)^3 / (1+0.11)^3  +

[ (2.8 * (1+0.3)^3 * (1+0.05) / (0.11 - 0.05)) / (1+0.11)^3 ]

P0 = $90.3328 rounded off to $90.33

P0 = $13.33

Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 78 cents per bottle. For the year 2014, management estimates the following revenues and costs.
Sales $1,804,000 Selling expenses—variable $69,800
Direct materials 428,000 Selling expenses—fixed 65,800
Direct labor 354,000 Administrative expenses—variable 64,920
Manufacturing overhead—variable 310,000
Administrative expenses—fixed 64,900
Manufacturing overhead—fixed 288,000
a. Prepare a CVP income statement for 2014 based on management’s estimates.
b. Calculate variable cost per bottle. (Round variable cost per bottle to 2 decimal places, e.g. 0.25.)
c. Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.)
d. Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 2 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.)
e. Determine the sales dollars required to earn net income of $240,852. (Round answer to 0 decimal places, e.g. 1,225.)

Answers

Answer:

a. CVP income statement for 2014 based on management’s estimates.

Sales                                                                                 $1,804,000

Less Variable Costs :

Selling expenses—variable                         $69,800

Direct materials                                          $428,000

Direct labor                                                 $354,000

Administrative expenses—variable            $64,920

Manufacturing overhead—variable           $310,000   ($1,226,720)

Contribution                                                                       $577,280

Less Fixed Costs

Selling expenses—fixed                             $65,800

Administrative expenses—fixed                 $64,900

Manufacturing overhead—fixed               $288,000      ($418,700)

Net Income / (Loss)                                                           $158,580

b. $0.34

c. (1) 2,616,875 bottles and (2) $1,308,438

d. contribution margin ratio = 32 % and margin of safety ratio = 27 %

e. $2,061,100

Explanation:

Number of Units Sold = Total Revenue ÷ Selling Price per unit

                                    = $1,804,000 ÷ $0.50

                                    = 3,608,000 bottles

Variable Cost per bottle = Total Variable Costs ÷ Number of Units Sold

                                         = $1,226,720 ÷ 3,608,000

                                         = $0.34

Break-even point in (units) = Fixed Costs ÷ Contribution per unit

                                            = $418,700 ÷ ($0.50 - $0.34)

                                            = 2,616,875 bottles

Break-even point in (dollars) = Fixed Costs ÷ Contribution Margin Ratio

                                               = $418,700 ÷ ($0.16 / $0.50)

                                               = $1,308,438

Contribution Margin Ratio = Contribution / Sales × 100

                                           = ($0.50 - $0.34) / $0.50 × 100

                                           = 32 %

Margin of safety ratio = (Expected Sales - Break Even Sales) / Expected Sales × 100

                                   =  ($1,804,000 - $1,308,438) / $1,804,000 × 100

                                   =  27.470 OR 27 %

Sales to Reach Target Profit = (Target Profit + Fixed Costs) ÷ Contribution Margin Ratio

                                               = ($240,852 + $418,700) ÷ 0.32

                                               = $2,061,100

For the year 2014, management estimates the following revenues and costs is :

A: Net Income / (Loss)     $158,580

B:The variable cost per bottle is $0.34.

C:The break-even point in units is 2,616,875 bottles  and  dollars is  $1,308,438.

D:The contribution margin ratio = 32 % and margin of safety ratio = 27 %

E:The sales dollars required to earn net income of $240,852 is $2,061,100.

"Revenues and Cost"

Part A:

CVP income statement for 2014 based on management’s estimates.

Sales                                                                                 $1,804,000

Less Variable Costs :

Selling expenses—variable                         $69,800

Direct materials                                          $428,000

Direct labor                                                 $354,000

Administrative expenses—variable            $64,920

Manufacturing overhead—variable           $310,000   ($1,226,720)

Contribution                                                                       $577,280

Less Fixed Costs

Selling expenses—fixed                             $65,800

Administrative expenses—fixed                 $64,900

Manufacturing overhead—fixed               $288,000      ($418,700)

Net Income / (Loss)                                                           $158,580

Part B :

The variable cost per bottle is :

Number of Units Sold = Total Revenue ÷ Selling Price per unit

Number of Units Sold                              = $1,804,000 ÷ $0.50

Number of Units Sold                             = 3,608,000 bottles

Variable Cost per bottle = Total Variable Costs ÷ Number of Units Sold

Variable Cost per bottle   = $1,226,720 ÷ 3,608,000

Variable Cost per bottle  = $0.34

The variable cost per bottle is $0.34.

Part C:

The break-even point in (1) units and (2) dollars is :

Break-even point in (units) = Fixed Costs ÷ Contribution per unit

Break-even point in (units) = $418,700 ÷ ($0.50 - $0.34)

Break-even point in (units)  = 2,616,875 bottles

Break-even point in (dollars) = Fixed Costs ÷ Contribution Margin Ratio

Break-even point in (dollars)  = $418,700 ÷ ($0.16 / $0.50)

Break-even point in (dollars)  = $1,308,438

The break-even point in units is 2,616,875 bottles  and  dollars is  $1,308,438.

Part D:

The contribution margin ratio and the margin of safety ratio is :

Contribution Margin Ratio = Contribution / Sales × 100

Contribution Margin Ratio  = ($0.50 - $0.34) / $0.50 × 100

Contribution Margin Ratio     = 32 %

Margin of safety ratio = (Expected Sales - Break Even Sales) / Expected Sales × 100

Margin of safety ratio =  ($1,804,000 - $1,308,438) / $1,804,000 × 100

Margin of safety ratio  =  27.470 OR 27 %

The contribution margin ratio = 32 % and margin of safety ratio = 27 %

Part E:

The sales dollars required to earn net income of $240,852 is :

Sales to Reach Target Profit = (Target Profit + Fixed Costs) ÷ Contribution Margin Ratio

Sales to Reach Target Profit = ($240,852 + $418,700) ÷ 0.32

Sales to Reach Target Profit  = $2,061,100

The sales dollars required to earn net income of $240,852 is $2,061,100.

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Rawls would agree with the idea that inequalities can be justified if they are based on home-country values. redistribute wealth and property benefit those in the highest position. are used to the advantage of everyone. benefit those in the worst position.

Answers

Answer:

benefit those in the worst position.

Explanation:

Rawls theory is based on the concept that no inequalities shall prevail in the country. Although some inequalities are unavoidable.

In those circumstances, when Rawls shall agree to such inequalities, and in-fact, further states that it shall benefit all the people. But for this he states that those in the worst position shall be benefited first and with maximum.

This shall create an equality as these people facing inequality will not be criticised further for any purpose, if they are paid off well in the first instance only.

Which of the following is NOT an example of aggressive accounting practices? Select one or more a. Recording contingent losses that are probable b. Using a lower estimate of bad debts. c. Recording research and development costs as assets d. Increasing the useful life used in calculating depreciation

Answers

Answer: a. Recording contingent losses that are probable

Explanation:

Aggressive Accounting strategies are methods of recording company activities that will make it appear as if the company is doing well financially. These include acts such as;

Using a lower estimate of bad debts so that the bad debt expense deducted from income is lessRecording research and development costs as assets so that they are not deducted as expenses from income. Increasing the useful life of assets in depreciation calculations so that the depreciation amount deducted from income is less.

Recording contingent losses that are probable on the other hand is a conservative accounting policy.

lectronically filed tax returns: a. May not be transmitted from a taxpayer's home computer. b. Constitute less than 50 percent of the returns filed with the IRS. c. Offer faster refunds than paper returns. d. Have error rates similar to paper returns.

Answers

Answer: c. Offer faster refunds than paper returns.

Explanation:

The IRS has stated that people who submit their tax returns electronically or use the Direct debit facility will see their refunds faster than those using paper returns.

This has been most recently blamed on the current pandemic which has forced the IRS to reduce its staff in adherence with Corona virus prevention tips. As a result, the available staff cannot process the paper returns as fast.

It is therefore better to use the electronic or the Direct debit facilities if one wants their returns processed fast and their refunds released earlier.

Tacit collusion is more likely to be a concern with horizontal alliances. vertical alliances. international alliances of any kind compared with domestic alliances. U.S. alliances with companies in less- developed countries.

Answers

Answer:

horizontal alliances

Explanation:

A horizontal alliance is a term that describes a form of arrangements or partnership between businesses that conduct as competitors in the exact area.

In other words, competitors work in unison to enhance their strategy in the market.

On the other hand, Tacit Collusion occurs when firms avoid actions that are likely to require or demand a response from another firm often a competitor. For example, when a firm avoids the opportunity to price cut an opposition due to the fact that, the opposition may retaliate

Hence, Tacit collusion is more likely to be a concern with HORIZONTAL ALLIANCE

If assets are $365,000 and equity is $120,000, then liabilities are: __________

a. $120,000
b. $245.000
c. $365,000
d. $485,000.
e. $610,000.

Answers

Answer:

b. $245.000

Explanation:

The computation of the liabilities is shown below:

As we know that

The accounting equation comprise  of

total assets = total liabilities + total equity

where,

total assets = $365,000

Total equity = $120,000

So, the total liabilities is

= total assets - total equity

= $365,000 - $120,000

= $245,000

Hence, the total liabilities is b. $245.000

The communication tools a company uses to pursue its advertising and marketing objectives is often referred to as the company’s ________.

Answers

Answer:

Promotional mix.

Explanation:

In a person's day to day involvement in business, their are key patterns and methods that are used as target strategies to promote his/her business, Therefore this mix model is explained as the collection of tools you use that explicitly in enhancing of business, products, or services. The keys that are used most times use are personal selling, direct marketing, and sales promotions, also personal approach and also advertising play vital roles too. This model design directly shows its target audience values, features of the products or services you offer. This helps differentiate you from your competition and drive sales.

Which of the following statements is true of radio-frequency identification (RFID) tags?
a. They can help identify genuine products from counterfeit knock-offs.
b. They are designed to learn more about customers' wants, needs, and behaviors.
c. They help firms gain competitive advantage by forecasting customer retention rates.
d. They help identify which customers should be the focus of targeted marketing initiatives.

Answers

Answer:

Correct Answer:

a. They can help identify genuine products from counterfeit knock-offs.

Explanation:

Radio-frequency identification (RFID) tags refers to a technology whereby digital data encoded in RFID tags  are captured by a reader via radio waves. In general, RFID is similar to barcoding in that data from a tag or label are captured by a device that stores the data in a database.

Answer:

a. They can help identify genuine products from counterfeit knock-offs.

Explanation:

Radio-frequency identification: The term "radio-frequency identification" is also referred as RFID, and is described as a phenomenon that utilizes "electromagnetic fields" to track and identify different tags attached to various objects automatically. Therefore, a radio-frequency identification tag generally possesses a small "radio transponder" which is a radio transmitter and receiver. Lastly, when it is being triggered by any "electromagnetic interrogation pulse" from a closed RFID "reader device", then the tag tends to transmit some digital data i.e, inventory number to the reader.

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