Projected sales for a tent manufacturer are $510,000. Each tent sells for $850 and requires $350 of

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

Question:

Projected sales for a tent manufacturer are $510,000. Each tent sells for $850 and requires $350 of variable costs to produce. The tent manufacturer’s total fixed costs are $145,000.
What is the tent manufacturer’s margin of safety?

Related Book For answer-question

Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

See More Books

Posted Date: May 11, 2023 02:57 AM

See More Questions

The Generic Publications Textbook Company sells all of its books for $100 per book, and it currently costs $50 in variable costs to produce each text. The fixed costs, which include depreciation and...
The Yellow Shelf Company sells all of its shelves for $100 per shelf, and incurs $50 in variable costs to produce each. If the fixed costs for the firm are $2,000,000 per year, what will the EBIT for...
Study the information given below and answer the following questions: (25 Marks) 1.1 Calculate the Payback Period of both machines (answers expressed in years, months and days). (5 marks) 1.2 Which...
Factor each polynomial. 64y 9 + z 6
In a manufacturing process, the impurity level of the product is measured on a daily basis. When the process is operating normally, the impurity level is approximately normally distributed with a...
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool...
What is the annual energy demand for a building in Denver, Colorado, if the peak heat load is $150,000 \mathrm{Btu} / \mathrm{h}$ based on a design temperature difference of \(75^{\circ}...
Consider the following project network. Note that the normal or expected activity times are denoted Ïi, I = A, B, . . . , I. Let xi = the earliest finish time for activity i. Formulate a linear...
Use the following 4-step approach when analyzing ethical issues and case studies. 1. Identify the ethical issue(s) noted in the reading. Isolate the true issue or issues. 2. Identify the stakeholders...
Complete the missing amounts in the following production report. Materials are added at the beginning of the process; conversion costs are incurred evenly; the ending inventory is 60% complete. The...
Calculate ROE,ROA,APT,ART,INVT,PPET,C2C for Amazon TABLE 3-1 Selected Financial Data for Amazon.com and Nordstrom Inc. Nordstrom Inc. Amazon.com Period Ending 31-Dec-13 2-Feb-13 Total Revenue...
Which of the following can be analyzed using a protein microarray? a. The amounts of particular proteins made by a sample of cells b. Protein function c. Protein-protein interactions d. All of the...
Discuss the themes, theory, and/or phenomenon that would be anticipated to emerge as a result of the examination. Develop a hypothetical research scenario that would necessitate the use of the...
Which of the following is a type of genetic change that could produce an oncogene? a. Missense mutation b. Gene amplification c. Chromosomal translocation d. All of the above can produce an oncogene.
A viral protein that is needed to make HIV DNA is a. integrase. b. reverse transcriptase. c. Vpr. d. Gag polyprotein.
Identify the research scenario, including the general area of focus. Develop a hypothetical research scenario that would necessitate the use of the Qualitative Method and the Ethnographic...
A diet needs to be created that contains not less than 1846 calories, not more than 78 grams of protein, not less than 10 grams of carbohydrates and not less than 14 grams of fat. Also, the diet...
Name some of the various types of financial intermediaries described in the chapter and indicate the primary reason(s) each was created.
You have been offered the opportunity to invest in a project which is expected to provide you with the following cash flows: $4,000 in 1 year, $12,000 in 2 years, and $8,000 in 3 years. If the...
You may have heard the statement that you should not include your home as an asset in your investment portfolio. Assume that your house will comprise up to 75 percent of your assets in the early part...
Anaconda Manufacturing Company currently owns a mine that is known to contain a certain amount of gold. Since Anaconda does not have any gold mining expertise, the company plans to sell the entire...
The cement industry is an example of an undifferentiated oligopoly. The automobile industry is a differentiated oligopoly. Which of these two is more likely to advertise? Why?
What is the purpose of a brand name? What would occur if any maker of aspirin could put a Bayer Aspirin label on its product?
The South American cocaine industry consists of several families that obtain the raw material, refine it, and distribute it in the United States. There are only about three large families, but there...

Projected sales for a tent manufacturer are $510,000. Each tent sells for $850 and requires $350 of

Question:

Expert Answer:

Solution The margin of safety represents the amount by which actual sales exceed the breakeven point ... View the full answer

Fundamentals of corporate finance

Students also viewed these accounting questions