a. If Del Rosario Company, with a break-even point at $455.000 of sales, has actual sales of $650,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. 2. b. If the margin of safety for Del Rosario Company was 25%, fixed costs were $1,080,000, and variable costs were 75% of sales, what was the amount actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)

a. If Del Rosario Company, with a break-even point at $455.000 of sales, has actual sales of $650,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. 2. b. If the margin of safety for Del Rosario Company was 25%, fixed costs were $1,080,000, and variable costs were 75% of sales, what was the amount actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23E

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