Use the Fact Situation in Q1 to Answer the Related

question 30

Multiple Choice

Use the fact situation in Q1 to answer the related question that follows. Assuming that both the Royal Bank and the TD Canada Trust mortgage were registered on title to George's home,the equity in the home would be

• A)$450 000.00
• B)$250 000.00
• C)$700 000.00
• D)$50 000.00
• E)$750 000.00

Calculate the margin of safety in dollars and percentage.

Apply changes in the business environment (e.g., sales incentives, price changes, advertising budget adjustments) to predict their effect on net operating income.

Estimate sales required to achieve a target profit.

Understand the concept of contribution margin ratio and its application in determining target profit sales.