User Account

All Pages

What is the margin of safety

Assignment Help Accounting Basics
Reference no: EM133104921

Question - APPLY THE CONCEPTS: Margin of Safety - Margin of safety can allow you to see how much padding there is for your company between profit and loss. If this number is great, it may indicate that your company is performing very well. If this number is small, it may be worth looking into possible remediation. Consider the following pricing and cost information:

Price and Cost Information Amount

Selling Price per Unit $500

Variable Cost per Unit $350

Total Fixed Cost $50,000

For the upcoming period, the company projects that it will sell 5,000 units. Considering that the company has a unit break-even point of 333.33 units, what is the margin of safety in terms of both units and sales revenue?

Reference no: EM133104921

Questions Cloud

Discuss the evolution of information systems technology : Discuss the evolution of information systems technology generations and architectures and its influence on silo environment and Describe the role of Enterprise
Which of the suppliers cash discounts should firm give up : If the firm can obtain short-term funds from its commercial bank at 12% interest, which if any, of the suppliers' cash discounts should the firm give up
Describe the purchase-to-pay business process : Describe the purchase-to-pay business process and Create a purchase requisition for stock and consumable materials
Explain master data associated with the fulfillment process : Discuss the role of the credit management process in fulfillment and Effectively use SAP ERP to execute the key steps in the fulfillment process
What is the margin of safety : Considering that the company has a unit break-even point of 333.33 units, what is the margin of safety in terms of both units and sales revenue
At what amount should the inventory at year-end be reduced : Goods out on consignment at sales price, including 40% markup on cost P1,400,000. At what amount should the inventory at year-end be reduced
What amount of impairment loss to be recognized on December : On January 1, 2019, Zion Bank provided a loan of P4,000,000 to a XYZ Co. What amount of impairment loss to be recognized on December
Get familiar with global bikes it strategy : Get familiar with Global Bikes IT strategy - Narrative about Global Bike's information technology strategy
Compute the consolidated cost of goods sold : During 2019, Pak purchased inventory items from Sak at a selling price of P800,000. Compute the consolidated cost of goods sold

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd