Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 20, 2024

1 Honda Fit Ltd purchased a new piece of machinery to expand the production output of its top-of-the-line car model. The marginal income ratio is

image text in transcribed

1 Honda Fit Ltd purchased a new piece of machinery to expand the production output of its top-of-the-line car model. The marginal income ratio is 64% and the company has R3 200000 as fixed costs. After the machine was purchased, the company achieved a sales revenue of R5 600000 . Determine the company's margin of safety in percentage terms and comment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capital And Finance

Capital And Finance

Authors: Peter Lewin, Nicolás Cachanosky

1st Edition

0367514559, 978-0367514556

More Books

Students also viewed these Finance questions

Question

★★★★★

You are a project consultant for the ACME Company and are helping to develop an agile method using SCRUM. The company has always used predictive project management methods for software development,...

Answered: 1 week ago

Question

★★★★★

3. It is often suggested that the Federal Reserve try to achieve zero inflation. If we assume that velocity is constant, does this zero-inflation goal require that the rate of money growth equal...

Answered: 1 week ago

Question

★★★★★

What are chronic social identities? Which of your social identities would you describe as chronic?

Answered: 1 week ago

Question

★★★★★

Check It Off Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customers bank. The...

Answered: 1 week ago

Question

★★★★★

Peachtree Company uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the...

Answered: 1 week ago

Question

★★★★★

Garza Company had sales of $151,000, sales discounts of $2,250, and sales returns of $3,625. Garza Company's net sales equals: $5,875. $145,125. $148,750. $151,000. $156,875.

Answered: 1 week ago

Question

★★★★★

Henry Mintzberg's argument is that strategic management is an artistic endeavor. If he's right, then what value is there in systematic approaches to strategic planning such as those elaborated in...

Answered: 1 week ago

Question

★★★★★

Describe some situations in a math class that metaphorically fit the broken escalator situation (being stuck, not moving forward, something going wrong).

Answered: 1 week ago

Question

★★★★★

1. Please read this 1927 Supreme Court case and analyze it using the IRAC format, which was introduced in our first chapter. 5 Gong Lum v. Rice, 275 U.S. 78 (1927).pdf Download 5 Gong Lum v. Rice,...

Answered: 1 week ago

Question

★★★★★

A client comes into a bank and requests to make a bank deposit of $9000. Under the Proceeds of Crime and Terrorist Financing Act of 2000 what must the bank do to be compliant with legislation? Select...

Answered: 1 week ago

Question

★★★★★

In the country Gamma it takes 6 hours to produce one automobile and 1 hour to produce a bale of cotton. In the country Delta it takes 10 hours to produce one automobile and 2.5 hours to produce a...

Answered: 1 week ago

Question

★★★★★

Write formal proposal requests.

Answered: 1 week ago

Question

★★★★★

Write an effective news release.

Answered: 1 week ago

Question

★★★★★

Identify the different types of proposals.

Answered: 1 week ago

Previous Question Next Question