What does it mean to have a margin of safety of 20%?
Question:
What does it mean to have a margin of safety of 20%?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (3 reviews)
A margin of safety of 20 means that the breakeven l...View the full answer
Answered By
Nyron Beeput
I am an active educator and professional tutor with substantial experience in Biology and General Science. The past two years I have been tutoring online intensively with high school and college students. I have been teaching for four years and this experience has helped me to hone skills such as patience, dedication and flexibility. I work at the pace of my students and ensure that they understand.
My method of using real life examples that my students can relate to has helped them grasp concepts more readily. I also help students learn how to apply their knowledge and they appreciate that very much.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Managerial Accounting
ISBN: 9781260193275
12th Canadian Edition
Authors: Ray H. Garrison, Alan Webb, Theresa Libby
Question Posted:
Students also viewed these Business questions
-
What does it mean to have a statistically stable process?
-
(a) What does it mean to have a fee simple defeasible estate? (b) What is the difference between a remainder interest and a reversion? (c) Arla and Jack own a house as joint tenants with right of...
-
What does it mean to say that the U.S. dollar has depreciated in value in relation to the Mexican peso? What does it mean to say that the Mexican peso has appreciated in value relative to the U.S....
-
Q4. a- In a uniform electric field, what factors does the electrical potential energy depend on? b- What is the difference between APE electric and PE electric?
-
A simple pendulum is set into small-angle motion, making a maximum angle with the vertical of 5o. Its period is 2.21 s. (a) Determine its length. (b) Determine its maximum speed. (c) What is the...
-
Should a firm insure itself against all of the insurable risks it faces? Explain.
-
Assuming the short rate process of Exercise 2 and risk-neutral probabilities of .5 , consider a zero-coupon bond that pays \(\$ 1\) at time \(t=2\). Find the value at time \(t=0\) of this bond in two...
-
Using the payroll register from 6-2A for Charles' Cleaners, complete the General Journal entry for the employees' pay for the July 12 pay date. Paychecks will be issued in the future.
-
For each of the following, compute the future value: Interest Present Value Years Future Value Rate $2,250 11 10% ? 8,752 7 8% ? 76,355 14 17% ? 183,796 8 7% ?
-
Executive Transport, Inc. is a company that rents cars, vans, and limos to a wide range of customers. Customers frequently call Executive Transports sales staff to receive quotes for rental expenses....
-
If a company experiences an increase in the contribution margin per unit, what will be the impact on its break-even level of sales?
-
James House is planning on starting a cleaning services business but has not decided whether he should focus on residential clients or commercial clients. His estimates of revenue, variable expenses,...
-
What is exclusive dealing and what are tying contracts?
-
A company, which makes up its financial statements annually to 31 December, provides for depreciation of its machinery at the rate of 15 per cent per annum using the reducing balance method. On 31...
-
Explain the difference between cardinal and ordinal utility. Do you think that it is possible for researchers to fi nd out which type of utility people actually have?
-
In what ways is social cost-benefi t analysis similar to a consumers decision about allocating resources or to a fi rms investment decision? In what ways is it different?
-
A On 10 August 2009 Joblot, a computer software retailer, bought a non-current asset which cost 100,000. It had an anticipated life of four years and an estimated residual value of 20,000. Due to...
-
In 2012, Target expanded its business into Canada. The proximity to the U.S. and Canadians familiarity with the brand made expansion across the border seem like a natural step for the retail...
-
Why might it be reasonable to believe that including securities issued in foreign countries will improve the risk-reward performance of your portfolio?
-
Repeat the previous problem, but close the positions on September 20. Use the spreadsheet to find the profits for the possible stock prices on September 20. Generate a graph and use it to identify...
-
Define the following terms, differential cost, opportunity cost, and sunk cost.
-
Only variable costs can be differential costs. Do you agree? Explain.
-
Only variable costs can be differential costs. Do you agree? Explain.
-
(1) Solve the given logarithmic equation log(x-1) + Log (x+1)= 2 Log (x+2) (ii) Log(x-3)- Logx = Log 2 93) in an (i) Cooling, the Value of experiment involving newtons law of temperature (C) is given...
-
Write a 2-3 page report explaining to Quinn why you can't move revenue from one period to another. In the report: Explain the importance of ethics in accounting. Apply ethical principles and...
-
Sebastian wants to open a small tire-selling business. His fixed costs are $12,000, his price per unit is $45 a tire, and his variable costs per unit total out at $9 per tire. How many tires does...
Study smarter with the SolutionInn App