Given the following: compute the company's break-even point in dollars and the margin of safety in dollars and in percentage. Selling Price Per Unit        15 100   Variable Expense       9 20   Number of Units       20,000 5,000                               A) Hawaiian Fantasy Percent Tahitian Joy Percent Amount Percent Sales $300,000 100% $500,000 100% $800,000 100% Variable Expenses $180,000 60.00% $100,000 20.00% $280,000 35.00% Contribution Margin $120,000 40.00% $400,000 80.00% $520,000 65.00% Fixed Expenses         $475,800 59.48% Net Operating Income         $44,200 5.53%

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
icon
Related questions
Question

Given the following:

compute the company's break-even point in dollars and the margin of safety in dollars and in percentage.

Selling Price Per Unit        15 100  
Variable Expense       9 20  
Number of Units       20,000 5,000  
             
             
A) Hawaiian Fantasy Percent Tahitian Joy Percent Amount Percent
Sales $300,000 100% $500,000 100% $800,000 100%
Variable Expenses $180,000 60.00% $100,000 20.00% $280,000 35.00%
Contribution Margin $120,000 40.00% $400,000 80.00% $520,000 65.00%
Fixed Expenses         $475,800 59.48%
Net Operating Income         $44,200 5.53%
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 3 images

Blurred answer
Knowledge Booster
Strategic business units
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning