Fillmore Cookery Reported Actual Sales of $2,000,000, and Fixed Costs

question 38

Essay

Fillmore Cookery reported actual sales of $2,000,000, and fixed costs of $400,000. The contribution margin ratio is 25%.
Instructions
Compute the margin of safety in dollars and the margin of safety ratio.

Evaluate decisions based on the after-tax discount rate and discount factors.

Assess the impact of equipment's useful life and salvage value on the project's value.

Identify the incremental sales and cash operating expenses related to a project.

Understand the process of selecting discount factors for NPV calculations from provided tables.

---

Definitions:

Average Score

The numerical average obtained by dividing the sum of all scores by the number of scores.

T Test

A statistical analysis method that evaluates if there's a significant difference between the average values of two distinct groups.

Null Hypothesis

A hypothesis that suggests there is no statistical significance in a set of given observations, serving as a default position until evidence suggests otherwise.

Research Hypothesis

A specific, testable prediction about the outcome of a scientific study based on theory or prior research.