A Company Has a Margin of Safety of 25%, a Contribution

question 107

Essay

A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of $1,000,000.
(a) What was the break-even point?
(b) What was the operatingincome?
(c) If neither the relationship between variable costs and salesnor the amount of fixed costs is expected to change in the next year; how (c) much additional operating income can be earned by increasing sales by $\$ 110,000$ ?

Recognize the impact of emerging technologies and trends on business communication.

Understand the concept of plagiarism in the context of ethical communication.

Differentiate between high-context and low-context cultures and their communication styles.

Identify techniques for improving intercultural communication.

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Definitions:

Monopolist

A single supplier in a market that controls all the goods or services of a particular type, without any competitors.

AC

Stands for Average Cost, which is the total cost of production divided by the number of goods produced.

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs or regulatory requirements.

Monopoly

a market structure characterized by a single seller who has exclusive control over a product or service, often leading to higher prices and less competition.