If the variable cost ratio is 70%, and the variable cost per unit is $50, and the

Fantastic news! We've Found the answer you've been seeking!

Question:

If the variable cost ratio is 70%, and the variable cost per unit is $50, and the after tax net income is $250,000 with a tax rate of 20%, what is the margin of safety (in units)?

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

See More Books

Posted Date: Feb 02, 2024 12:14 AM

See More Questions

Why is Haiti suffering from supply and demand issues
Sue Wilson is the new financial manager of Northwest Chemicals (NWC), an Oregon producer of specialized chemicals that are sold to farmers for use in fruit orchards. She is responsible for...
Sue Wilson is the new financial manager of Northwest Chemicals (NWC), an Oregon producer of specialized chemicals that are sold to farmers for use in fruit orchards. She is responsible for...
Calculate the following integral approximately by using the Simpson's method: 3.6 f. f(x) dx X 0.0 0.6 1.2 1.8 2.4 3.0 3.6 f(x) 0 0.13 0.05 0.6 0.43 0.74 0.93
Try pushing your fingers together. Can you push harder on one finger than the other finger?
a. Why do you think China, one of the most communist of nations, wanted to join the WTO? b. Would it surprise you to learn that Iraq, Iran, and Syria, while not currently WTO members, are all...
Consider the calculation of an external rate of return (ERR). The positive cash flows in the cash flow profile are moved forward to $t=n$ using what value of $i$ in the $(F \mid P i, n-t)$...
Mighty Bright Window Cleaners monthly income statement at several levels of activity is as follows: Required a. Identify each expense as fixed, variable, or mixed. b. Prepare a contribution margin...
Explain what a database management system is. Describe the functions of a database management system. 5 Paragraph Essay Intro ,Body , Conclusion
On 30 June 2018, Amalfi, Inc. purchased equipment with an estimated 5-year life for $42,600. The residual value was estimated at $9,900. Amalfi uses straight-line depreciation and calculate...
Write a program that reverses a string and prints it on the screen. The sentence may contain spaces and the maximum number of characters including in the sentence is 99. Sample input/output:...
Consider the data contained in the table below, which lists 30 monthly excess returns to two different actively managed stock portfolios (A and B) and three different common risk factors (1, 2, and...
a. Develop the network. b. Determine the earliest and latest activity time and slack. c. Identify the critical path. d. Calculate the project length after crashing the project by 2 weeks. [2 marks]...
Larry's utility function is U = 4X + 12Y. Which property of consumer preferences does Larry's utility function violate? Explain your answer.
(a) Interrupt I/O is a way of controlling input/output activity whereby a peripheral or terminal that needs to make or receive a data transfer sends a signal. Figure 2 shows the priority interrupt of...
Determine the pH of the Na2HPO4 1.10 M / KH2PO4 0.15 M buffer system.
Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year,...
Suppose you are the money manager of a $4 million investment fund. The fund consists of four stocks with the following investments and betas: If the market required rate of return is 14 percent and...
What type of information can investors get from stock and bond quotation?
Stocks R and S have the following probability distributions of returns: a. Calculate the expected return for each stock. b. Calculate the expected return of a portfolio consisting of 50 percent of...
Which depends on gravityweight or mass?
Where would your weight be greateron Earth or on the Moon? Where would your mass be greater?
What two main ideas of Aristotle did Galileo discredit?

If the variable cost ratio is 70%, and the variable cost per unit is $50, and the

Question:

Expert Answer:

To calculate the margin of safety in units you first need to find t... View the full answer

Principles of Finance

Students also viewed these accounting questions