Mercantile corporation has sales of $2,000,000, variable costs of $1,100,000, and fixed costs of $750,000. mercantile's margin of safety ratio is

margin of safety ratio is 7.5%

Explanation:

sales made/budgeted sales = $2000000

variable cost = $1100000

fixed costs = $750000

Total cost incurred = variable cost + fixed cost

                               = $1100000 + $750000

                               = $1850000

margin of safety = (sales made/budgeted sales) - (the break-even point)

Break-even point is the point where sales made is equal to total cost incurred

The break-even point is = $1850000 which is contained inside the sales made i.e the point where cost incurred meets sales made

while the margin of safety is = the sales made - the break even point

                                                = $2000000 - $1850000

                                                = $150000

Margin of safety ratio is calculated as = margin of safety / total sales * 100

the margin of safety ratio  = 150000/2000000 * 100

                                              = 0.075 * 100 = 7.5%

its ii) i did this test

explanation:

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know