What important information is conveyed by the margin of safety calculation in CVP analysis?


The break-even point in CVP analysis is critical because it divides profitable levels of operation from unprofitable levels of operation. The margin of safety gives managers an idea of the extent to which sales can fall before operations will become unprofitable.

Business

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Use the ________ when you must deliver bad news, if your audience has an emotional investment in the situation

A) blended approach B) discretionary approach C) direct approach D) indirect approach E) persuasive approach

Business

Under the revised Article 9 of the Uniform Commercial Code, ________.

A. a security interest in an after-acquired property cannot attach to that property until the debtor obtains some property rights in the new property B. a creditor cannot protect her security interest in collateral against other creditors of a debtor and other third persons C. the attachment of a security interest to the collateral does not automatically give a secured party a security interest in the proceeds on the disposal of the collateral by the debtor D. a creditor cannot use the collateral to protect his interest in repayment of the money advanced to a debtor by covering future advances

Business

Supplier viability can be especially important if the supplier is providing mission-critical products and it would be easy to find a replacement for them

Indicate whether the statement is true or false.

Business

Suppose that the risk-free rates in the United States and in Japan are 5.25% and 4.5%, respectively. The spot exchange rate between the dollar and the yen is $0.008828/yen. What should the futures price of the yen for a one-year contract be to prevent arbitrage opportunities, ignoring transactions costs?

A. $0.009999/yen B. $0.009981/yen C. $0.008981/yen D. $0.008891/yen

Business