CALCULA Exercise 193 Cunningham Industries reported actual sales of $2,000,000, and fixed costs of $540,000. The contribution margin ratio is 30%. Compute the margin of safety in dollars and the margin of safety ratio. Margin of safety in dollars 24 % Margin of safety ratio Click if you would like to Show Work for this question: Open Show Work
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- hh. Subject :- Accounting For Kosko Company, actual sales are $ 1,200,000 and break-even sales are $ 960,000 Compute (a) the margin of safety in dollars and (b) the margin of safety ratio. Margin of safety Margin of safety ratioEXERCISE: Computing and Using the CM Ratio,Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000.Required:1. What is the company’s contribution margin (CM) ratio?2. Estimate the change in the company’s net operating income if it were to23.AA Mouse, Inc. makes a special mouse for computers. Each mouse sells for Php 25 and annual production and sales are as 120,000 units. Cost of each mouse are as follows: Direct Material Php6.00, Direct Labor 3.00, Variable Overhead 0.80, Variable Selling expenses Php 2.2, and Total Fixed Overhead Cost Php 589,550.00. Calculate the unit contribution margin in pesos. 24.Based on the facts of AA Mouse, Inc. What is the contribution margin ratio for the product? 25.Based on the facts of AA Mouse, Inc. How many mice must the company sell if it desires to earn Php 996,450 in before-tax profits?
- Staley Co. manufactures electronic equipment. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 520 100.00 Variable costs 332 63.85 Unit contribution margin $ 187 35.96 Assume that Staley Co. is currently selling 640 products per month and monthly fixed costs are $80,400.Staley Co.'s operating income (πB) is calculated to be: Multiple Choice $38,280. $40,280. $43,280. $42,280. $39,280.Prepare a contribution margin format income statement; calculate breakeven point Presented here is the income statement for Big Surf, Inc., for the monthof May:Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65,000Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,500Gross profi t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,500Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (2,500)Based on an analysis of cost behavior patterns, it has been determined that the company’s contribution margin ratio is 30%.Required:a. Rearrange the preceding income statement to the contribution margin format.b. If…Meargia Plastics is evaluating its plastic bottles division. The accounting manager has come upwith the following data for the year: contribution margin of $500,000, controllable fixed costs of$200,000, and noncontrollable fixed costs of $50,000.What is the controllable margin and total contribution by profit center (CPC)?a. Controllable margin: $200,000; CPC: $50,000b. Controllable margin: $50,000; CPC: $500,000c. Controllable margin: $250,000; CPC: 300,000d. Controllable margin: $300,000; CPC: $250,000
- Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 612,000 $ 40 Variable expenses 428,400 28 Contribution margin 183,600 $ 12 Fixed expenses 152,400 Net operating income $ 31,200 1. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 2. What is the company’s CM ratio? If sales increase by $97,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?From 27th Edition, Carl Warren, James M. Reeve, Jonathan Duchac Chapter 18-21, Margin of Safety If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, 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 Canace Company was 20%, fixed costs were $1,875,000, and variable costs were 80% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)The welcome company sells its single product. The company’s sales and expenses for the recent period are as follows: Description Total Tk. Sales (40,000 units) 20,00,000 Less: Variable Expenses 14,00,000 Contribution Margin 6,00,000 Less: Fixed Expenses 480,000 Net Operating Income 120,000 Calculate ‘Margin of Safety Ratio’ for the company.Single line text.