A company's forecasted sales are $300,000 and its sales at break-even are $180,000. Calculate the margin of safety in dollars.
Q: How do you compute the monthly margn of safety in dollars if the shop has a monthly target profit…
A: Given that: Target profit = $54000 Variable costs = 20% of sales Fixed costs = $18000
Q: If Canace Company, with a break-even point at $372,600 of sales, has actual sales of $460,000, what…
A: Margin of safety is part of cost volume profit analysis. It indicates the actors of actual sales…
Q: Margin of Safety The Rachel Company has sales of $290,000, and the break-even point in sales dollars…
A: Formula used: Margin of safety = [ Current sales - Break even sales ) / Current sales ] x 100 In…
Q: If a business had sales of $4,000,000 and a margin of safety of 25%, the break-even point in sales…
A: Margin of safety = Actual sales - Break even point Sales Actual sales = $4,000,000 Margin of safety…
Q: Margin of Safety The Spector Company has sales of $440,000, and the break-even point in sales…
A: Fixed costs: These costs are constant and don’t change with the units produced. However, the cost…
Q: A firm estimates that it will sell 100,000 units of its sole product in the coming period. It…
A: CM ratio is contribution margin ratio of the company which shows ratio of contribution margin with…
Q: If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000,…
A: (1) Calculation of Margin of safety (dollars): (2) Calculation of Margin of safety (percentage of…
Q: If a business had sales of $3,826,000 and a margin of safety of 20%, the break-even point was
A: Margin of safety sales is the sales that will generate profit over the fixed cost. Break even sales…
Q: Hebner Housing Corporation has forecast the following numbers for this upcoming year: Sales =…
A: Net Income refers to gross income remained of an entity after deducting of all the desired expenses…
Q: If a firms expected sales are $256,000 and its break-even sales are $193,000, what will the margin…
A: Margin of safety: The margin of safety indicates how much a company’s sales level can drop before it…
Q: Determine the company's margin of safety percentage. Round answer to the nearest whole number.
A: Margin of safety is that portion of sales which is over and above the break even point of the…
Q: ean Company has sales of $228,000, and the break-even point in sales dollars is $157,320. Determine…
A: Margin of safety means the difference between the budget sales and breakeven sales. It means the…
Q: Dean Company has sales of $157,000, and the break-even point in sales dollars is $111,470. Determine…
A: Formula: Margin of safety in Dollars = Current sales - Break even sales Deduction of Break even…
Q: The Break-even point in peso sales for ABC Company is Php360,000 and the Company's contribution…
A:
Q: The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales =…
A: Break-even point indicates a point of sales wither in units or dollars where the company will only…
Q: What is the break-even point in sales dollars for RBC? What is the margin of safety for RBC? What…
A: Break Even point refers to point at which the total costs and total revenue of a company are equal,…
Q: he break-even point in sales is $300,000. If Crowne Company's target
A: the question is based on the concept of Cost accounting
Q: Jonick Company has sales of $460,000, and the break-even point in sales dollars is $372,600.…
A: Sales $4,60,000 Break-even point in sales dollars $3,72,600 Margin of Safety $ (Sales in dollar…
Q: A firm has a margin of safety percentage of 25.1% based on its actual sales. The break-even point is…
A: Break-even analysis is a technique used widely by the production management. It helps to determine…
Q: Jonick Company has sales of $740,000, and the break-even point in sales dollars is $547,600.…
A: The margin of safety is calculated as difference between current sales and break even sales.
Q: A firm estimates that it will sell 100,000 units of its sole product in the coming period. It…
A: The question is based on the concept of Cost Accounting.
Q: a. Compute the contribution margin ratio and the dollar sales volume required to break even. b.…
A: Contribution margin ratio The contribution margin ratio is the difference between a company's sales…
Q: he Rachel Company has sales of $820,000, and the break-even point in sales dollars is $672,400.…
A: Answer: Margin of Safety as a Percentage of Sales ((Current Sales - Break-Even Sales )/ Current…
Q: If sales are forecasted at 60,000 units and the break-even point is 48,000 units, what is the margin…
A: We need to calculate margin of safety in this question from the following given information : Sales…
Q: Quick Inc. has sales of $36,400,000, and the break-even point in sales dollars is $24,024,000.…
A: Margin of safety = Total sales - Break even sales = $36,400,000 - $24,024,000 = $12,376,000
Q: Dragon, Inc. has actual sales of $310,000 and a margin of safety of $136,400. What is Dragon's…
A: Break-even point in sales = Actual sales - margin of safety
Q: If a business had sales of P4,000,000 and a margin of safety of 10%, the break-even point was?
A: The question is based on the concept of Cost Accounting.
Q: P Company has provided the following data: Sales Price per unit: $50 Variable Cost per unit: $30…
A: We have the following information: Sales Price per unit: $50 Variable Cost per unit: $30 Fixed…
Q: Fu L. Khan has fixed costs of Php 120,000. At a sales volume of Php 400,000, return on sales is 10%;…
A: The provided information are: Fixed cost =Php 120,000 Sales volume = Php 400,000
Q: What is the breakeven point in dollars if annual fixed costs are 114,000 and Cost to Overhead is…
A: The following calculations are done as per the given information.
Q: The contribution margin ratio is 25% for Company A and the break-even point in sales is $260,000. If…
A: The break even sales are calculated as fixed cost divided by contribution margin ratio.
Q: The Warren Watch Company sells watches for $26, fixed costs are$155,000, and variable costs are $13…
A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…
Q: . Calculate the break-even sales when a business has sales of $824,000 and a margin of safety of…
A: Introduction: The dollar amounts of income at which a firm generates no profit are referred to as…
Q: Sharpe Knife Company expects sales next year to be $1,620,000 if the economy is strong, $860,000 if…
A: Expected level of sales can be calculated as the sum of product of probability of respective…
Q: . Compute the contribution margin ratio and the dollar sales volume required to break even. .…
A: a. Contribution Margin Ratio = Contribution Margin / Sales Contribution Margin = Sales Price Per…
Q: a. If Canace Company, with a break-even point at $281,400 of sales, has actual sales of $420,000,…
A: a. Margin of safety = Sales - break-even point = $420,000 - $281,400 = $138,600 Margin of safety as…
Q: The Bebemo Company has provided information concerning its projections for the coming year as…
A: Cost of goods sold = Fixed manufacturing cost + Variable manufacturing cost
Q: If the margin of safety is 40% of sales, which are P400,000, the break-even point: a.is greater…
A: Break-Even point:- It is a point from which a company starts incurring profit and covering its cost,…
Q: Margin of Safety The Rachel Company has sales of $500,000, and the break-even point in sales dollars…
A: Margin of safety (MOS) computes the distinction between the real or planned sales and break-even…
Q: A product sells for $30 per unit and has variable costs of $20 per unit. The fixed costs are…
A: Expected Contribution margin per unit = Expected sales price per unit - Expected variable cost per…
Q: A company's forecasted sales are $300,000 and its sales at break-even are $180,000. Calculate the…
A: Margin of safety is the sales value which exceeds the break even sales. We can calculate Margin of…
Q: A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of…
A: Margin of safety: It can be defined as the difference between the expected or projected sales and…
Q: Margin of Safety The Rachel Company has sales of $550,000, and the break-even point in sales dollars…
A:
Q: Hebner Housing Corporation has forecast the following numbers for this upcoming year: Sales =…
A: Income statement or statement of profit or loss helps investors to get to known about the total…
Q: A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of…
A: Margin of safety: Difference between total sales and break even sales is called margin of safety.…
Q: A company makes a single product with a sales price of £12 and a variable cost of £9. Fixed costs…
A: Required sales in Unit = Required sales = (Fixed cost +Desired profit)/Contribution per unit…
Q: : Selling Price $ 60 Variable manufacturing cost $ 33 Fixed manufacturing cost $ 250,000 per…
A: The cost volume profit analysis of a manufacturing company is a critical activity of management.…
Q: a. If Del Rosario Company, with a break-even point at $415,800 of sales, has actual sales of…
A: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin per unit =…
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- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
- Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
- Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.Macom Manufacturing has total contribution margin of $61,250 and net income of $24,500 for the month of June. Marcus expects sales volume to increase by 10% in July. What are the degree of operating leverage and the expected percent change in income for Macom Manufacturing? 0.4 and 10% 2.5 and 10% 2.5 and 25% 5.0 and 50%Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Required: 1. What is Hammonds variable cost ratio? Its contribution margin ratio? 2. Suppose Hammonds actual revenues are 200,000 greater than budgeted. By how much will before-tax profits increase? Give the answer without preparing a new income statement. 3. How much sales revenue must Hammond earn in order to break even? What is the expected margin of safety? (Round your answers to the nearest dollar.) 4. How much sales revenue must Hammond generate to earn a before-tax profit of 130,000? An after-tax profit of 90,000? (Round your answers to the nearest dollar.) Prepare a contribution margin income statement to verify the accuracy of your last answer.