Explain why it is important to calculate Margin of Safety.State TWO examples of fixed cost in relation to the zoo.Write a report to Mr Zoo for recommending which pricing plan should be adopted. Your recommendation should include at least ONE piece of financial and ONE piece of non-financial information.

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Business

Accounting

Explain why it is important to calculate Margin of Safety

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 7EB: Discuss how, as warehouse manager for Vinnies Vinyls, you view the different rate of allocated costs...

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

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Explain why it is important to calculate Margin of Safety.
State TWO examples of fixed cost in relation to the zoo.
Write a report to Mr Zoo for recommending which pricing plan should be adopted. Your recommendation should include at least ONE piece of financial and ONE piece of non-financial information.

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