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 $
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 $
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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