a. If Go-Go Buggies Company, with a break-even point at $6,000,000 of sales, has actual sales of $8,000,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales?1. Margin of Safety (dollars) $2. Margin of Safety (percentage) %b. If the margin of safety for Beartooth Company was 15%, fixed costs were $9,180,000, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)Actual sales in dollars $

calculate the margin safety as follows: Margin of Safety (dollars) = Actual Sales - Break Even…

Answered: a. If Go-Go Buggies Company, with a…

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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a. If Go-Go Buggies Company, with a break-even point at $6,000,000 of sales, has actual sales of $8,000,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales?

1. Margin of Safety (dollars)		$
2. Margin of Safety (percentage)		%

b. If the margin of safety for Beartooth Company was 15%, fixed costs were $9,180,000, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)

Actual sales in dollars $

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