Compute the contribution margin Using the projected sales for the coming year, compute the margin of safety and - margin of safety ratio.
Q: Calculate the per-unit contribution margin of a product that has a sale price of $180 if the…
A: The contribution margin can be stated on a gross or per-unit basis. It represents the incremental…
Q: Margin of safety is computed as Select one: O a. Contribution margin - Fixed costs O b. Breakeven…
A: Margin Of Safety is the difference between Break Even Sales and Actual Sales
Q: Using the least-squares method of analyzing costs, answer the following questions and show…
A: As per our protocol we provide solution to only 3 sub-parts under a single question. Kindly re-post…
Q: The margin of safety is equal to:
A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: A product has a sales price of $340 and a per-unit contribution margin of $136. What is the…
A: Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…
Q: The management of Brinkley Corporation is interested in using simulation to estimate the profit per…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: To calculate the sales dollars necessary to achieved a desired profit level, the sum of fixed costs…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: Prepare an analysis of the sales quantity and unit price factors did the price decrease generate…
A: Sales quantity factor = (Actual Quantity - planned Quantity) * Planned Sales Price Sales quantity…
Q: If Actual sales are OMR Total Fixed costs OMR 120000, Selling price per unit OMR 50, and Variable…
A: The margin of safety when added to the breakeven point gives the total sales.
Q: Refer to your class notes to find the formula for the contribution margin ratio, then use formulas…
A: Contribution Margin is the excess of revenue over variable cost. Contribution margin = Sales…
Q: Calculate the per-unit contribution margin of a product that has a sale price of $420 if the…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
Q: What is the effect of an increase in variable costs as a percentage of sales onthe contribution…
A: Variable cost refers to the cost which varies according to the volume of produced units. Increase in…
Q: Which of the following formulas is used to calculate the contribution margin ratio? (Sales − Fixed…
A:
Q: Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part…
A: Break-even point is the point at which the entity does not make any profit or loss That is Selling…
Q: Gross Profit Variance
A: The difference between selling price and cost of goods sold per unit gives the gross profit per…
Q: eases its selling price by 15%?” Discuss the following under CVP analysis (present graphical…
A: a) Hello thank you for the question. As per guidelines, we would provide only one answer at a time.…
Q: Calculate the per-unit contribution margin of a product that has a sale price of $200 if the…
A: Introduction: Per unit contribution margin: It tells the margin remaining after deducting all the…
Q: From the following particulars you are required to calculate (a) P I V ratio and (b) Break-even…
A:
Q: What is the contribution margin per unit? contribution margin ratio? Unit sales at break even…
A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…
Q: On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the:…
A: CVP stands for Cost-Volume-Profit analysis. It is helpful in determining the change in the total…
Q: What would be the impact on the targeted overhead rate if the firm decides to boost marketing…
A: Introduction: Absorption costing, sometimes known as full costing, is a method of calculating…
Q: If the total fixed costs Omr 75000, variable cost per unit Omr 15, contribution margin (CM) Omr 30…
A: Margin of safety(in value) = Profit/PE ratio
Q: The ratio of contribution margin in dollars to the selling price is the: Select one: Oprofit margin.…
A: We know that, Contribution is sales - variable cost
Q: On the cost-volume-profit graph, the area between the total cost line and the sales line after the…
A: CVP analysis helps in determining the effect of variation in the costs on the profitability of an…
Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…
A: This is part of break-even analysis.
Q: If the selling price is $20.80 per unit, the contribution margin per unit sold is closest to:
A: Contribution margin is the sales revenue of the business over and above all variable costs of the…
Q: Required: Compute the following variances in terms of contribution margin: 1. Compute the total…
A: Furniluxe manufactures two types of study desks - one for the residential market other for the…
Q: Using variable costing, what is the unit product cost for both years?
A: Computation of ending inventory Year 1 Year 2 Units in Beginning inventory 0 5000…
Q: background info is provided in the image attached. Solve the following: c) Assuming sales of 5,000…
A:
Q: Margin of safety ratio is computed by dividing excess of actual or budgeted sales from break- even…
A: Margin of safety ratio = Profit ratio / Contribution margin ratio
Q: If a company makes two products , R1 and R2, what is the fomula for the weighted-average unit…
A: Contribution margin is the difference between sales revenue earned from a particular product and…
Q: What is the EOQ for this component? b. What is the reorder point? c. What is the cycle time?
A: I am answering the first three sub-parts of the question as per bartleby policies. Please re-submit…
Q: APPLY THE CONCEPTS: Margin of Safety Margin of safety can allow you to see how much padding there is…
A: Break Even Point( In units) = Fixed Cost / Contribution per unit Margin of Safety( In Units) =…
Q: Compute the break-even point in sales dollars for the company as a whole and the margin of safety in…
A: Break-even point refers to a point at which the company earns neither profit nor deficit. If the…
Q: If, Total Fixed cost OMR 3200O, Selling price per unit OMR 20, and Variable cost per unit OMR 12.…
A: Margin of safety is the difference of sales and break even sales level. The break even sales in…
Q: For the current year, prevention costs are what percentage of sales?
A: Prevention costs are those costs that are incurred by the company to prevent any defects from…
Q: costs are an important noice for a company. WI nas annual benefits of $:
A: Operating costs refer to the expenses born by a company for running its daily activities.
Q: You are given the following • Total sales 40 • Total fixed cost 2 • Net profit 28 What is the TOTAL…
A: In order to determine the contribution margin per unit, the variable cost per unit is required to be…
Q: Contribution margin analysis focuses on explaining the differences between planned and actual…
A: Contribution margin: Contribution margin is computed after deducting variable costs from revenues.…
Q: Please explain this statement thoroughly. "To estimate what the profit will be at various levels…
A: The point at which an entity is at no profit no loss situation, that point is the point of…
Q: currently investigating the produc -alls that should be very popular.
A: Profit refers to the income which is distributed to owner in the profitable process of market…
Q: A company has following details for this year Details Total sales($) Total cost($) Details…
A: Required formulas:- P/V ratio= Profit/Sales =Sales-Total costSales Variable cost per ($)=Total…
Q: When preparing a forecasted contribution margin income statement and you are given the units…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
Q: If, Total Fixed cost OMR 40000, Selling price per unit OMR 20, and Variable cost per unit OMR 12.…
A: Given: Selling price per unit = OMR 20 Variable cost per unit = OMR 12 Therefore, Variable cost…
Q: Which of the following expressions can be used to calculate brcak-even sales revenue with the…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Use this information to compute the following: a. What is the contribution margin per passenger? b.…
A: given that, selling price per ticket = $50 variable cost per ticket = $20 fixed cost = $210000…
Step by step
Solved in 3 steps
- Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: It is expected that 12,000 units will be sold at a price of 240 a unit. Maximum sales within the relevant range are 18,000 units. Instructions 1. Prepare an estimated income statement for 20Y7. 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-even sales. 5. What is the expected margin of safety in dollars and as a percentage of sales? (Round to one decimal place.) 6. Determine the operating leverage.Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income taxA company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/2019
- Given the following information:SalesFixed ExpensesVariable Expensess5,0002,0001,750What would expected operating profit be if the company experienced a 10% increase in fixedcosts and a 100/0 increase m sales volume? a) $1,375. b) $1,550. c) $1,250. d) $1,750.What was Ether Corporation's net operating income for the year using variable costing? P181,000 P281,000 P271,000 P371,000A projected income statement of Hailwork’s company for the coming year follows: Sales $506300 |Total Variable Cost 170865 Contribution Margin ? Total Fixed Cost 175000 Operating Income ? Compute contribution margin and contribution margin ratio Compute the Operating Income How much revenue must be earned in order to breakeven What is the effect on contribution margin ratio if the unit selling price and unit variable cost increase by 10 percent each?
- Accounting Gosnell Company produces two products: squares and circles. The projected income for thecoming year, segmented by product line, follows:Squares Circles TotalSales P300,000 P2,500,000 P2,800,000Less: Variable expenses 100,000 500,000 600,000Contribution margin P200,000 P2,000,000 P2,200,000Less: Direct fixed expenses 28,000 1,500,000 1,528,000Product margin P172,000 P 500,000 P 672,000Less: Common fixedexpenses100,000Operating expenses P 572,000The selling prices are P30 for squares and P50 for circles.1. Compute the number of units of each product that must be sold for Gosnell Companyto break even.2. Assume that the marketing manager changes the sales mix of the two products sothat the ratio is three squares to five circles. Repeat Requirement 13. Refer to the original data. Suppose that Gosnell can increase the sales of squares withincreased advertising. The extra advertising would cost an additional P45,000, andsome of the potential purchasers of circles would switch to…Assuming Average cost flow method is used, how much is the ending inventroy and cost of sales, respectively? A. 130,300 and 101,000 B. 101,000 and 130,000 C. 105,000 and 126,300 D. 126,300 and 105,000Q1The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s Sales (200,000 units @ 2.5 Each) Rs. 5, 00,000 Variable cost 3, 00,000 Contribution margin 2, 00,000 Less Fixed cost 100,000 Profit before tax 100,000 Less tax 35,000 Profit after tax 65,000 Required Suppose a plant expansion will add Rs. 50,000 and increase capacity by 60% how many units would have to be sold after the addition to break even units in quantity
- A company’s contribution approach income statement showed net operating incomeof $4,000, and fixed expenses of $10,000. How much contribution margin did thecompany earn?a. $29,000b. $15,000c. $19,000d. $14,000SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…Sohar Company’s financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: P/V ratio, E.P. Sales required to earn a profit of OMR 40000. Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000.
