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The question 66 and 69 below does not need more information. Please only if someone can answer it comment otherwise i will wait until someone
The question 66 and 69 below does not need more information. Please only if someone can answer it comment otherwise i will wait until someone can. illiams Company has a selling price of $2.50 and a break-even sales volume of 8,000 units. Current revenue is $25,000. What is Williams' margin of safety? A. 20%. B. $2.00 C. 62.5% o. $6.25 E. .03% L04-A Cmunst 67. Operating leverage is used as: A. B. A measure of risk arising from having a sales volume which differs from breakeven volume. A measure of risk arising from having less margin of safety than anticipated A measure of risk arising from having more fixed costs. A measure of risk arising from having more variable costs. None of the above. E. L04- 68. Which of the following statements is true? The lower the margin of safety, the lower the risk of a loss if actual sales do not meet expectations. A good rule of thumb is that the margin of safety should be approximately 20%. The higher the margin of safety, the lower the risk of a loss if actual sales do not meet expectations. Firms that face highly variable demand conditions desire a lower margin of safety. None of the above statements are true. A. B. D. E. 04-C 63: Assume current sales are 10,000 units, selling price is $2.50 and margin of safety is 20%. If sales increase by 5%, what is the percent change in profits before taxes? A 40% BJ 25% 250% D. 12.5% E. 50% 04-B TC 5-11
The question 66 and 69 below does not need more information. Please only if someone can answer it comment otherwise i will wait until someone can.
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