Question
Margin of Safety
The Rachel Company has sales of $500,000, and the break-even point in sales dollars is $365,000.
Determine the company's margin of safety as a percent of current sales.
Expand
Transcribed Image Text

Margin of Safety The Rachel Company has sales of $500,000, and the break-even point in sales dollars is $365,000. Determine the company's margin of safety as a percent of current sales.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Management

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: What financial statement are the following posted on? 1) Net cash flows from operations 2) Sales 3) ...

A: Financial Statements are reports that convey the business activities and financial performance of th...

Q: How much must I deposit into an account every month to have $1,500,000 in 15 years at a rate of 7% c...

A: A recurring deposit is a special type of term deposit offered by banks which help people with regula...

Q: Oakbrook, Inc. reported actual sales of $2,000,000, and fixed costs of $350,000. The contribution ma...

A: Calculate break even sales in dollars

Q: The following information relates to a computer shop owner who makes all purchases on credit:       ...

A: Calculate the amount of total sales:

Q: My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 9 -- RECEIV...

A: Determine the amount of expected loss as at December 31, 20x3.

Q: Which of the following is not subject to self-employment tax? a. Gain on the sale of real estate hel...

A: Self-employment tax: It is a tax levied on the income generated from self-employment. A tax of 12.4 ...

Q: Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying chil...

A: Tax credits: Tax credit reduces the tax liability of the tax payer. Through tax credit an individual...

Q: for which funds are budgetary comparison schedules or statements required? should the actual revenue...

A: Financial accounting standards board (FASB):This is the organization which creates, develops, and ap...

Q: Compute conversion costs given the following data: Direct Materials, $364,700; Direct Labor, $194,00...

A: Conversion Cost: The cost that includes direct labor and factory overheads is reported as conversion...

Q: In the month of August, Beauty Salon services 560 clients at an average price of $120. During the mo...

A: Contribution Margin is the ability of the company to cover its variable cost. It is the balance  amo...

Q: geNOWv21 Online teachir X keAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessi...

A: a.  Prepare journal entry to record sale of merchandise for cash and the cost of goods sold.

Q: The perimeter of a rectangle is 64ft. The length of the rectangle is 3ft. Less than 4 times the widt...

A: Perimeter of the rectangle is the total distance around the rectangle's outside.Perimeter of the rec...

Q: At​ year-end, StickStick has cash of $ 22 comma 000$22,000​, current accounts receivable of $ 80 com...

A: Calculate the receivables turnover ratio.

Q: conduct horizontal and vertical analyses for the balance sheet and income statement accounts and rep...

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...

Q: Is a $2500 a material dollar amount? Explain.

A: Materiality concept:  The accounting concept which focusses that all the financial items and figures...

Q: The Sunshine Company has the following data in connection with its bankruptcy petition with the Secu...

A: Click to see the answer

Q: Williams Company bottles and distributes Supe Juice, a soft drink. The beverage is sold for 50 cents...

A: An Income Statement prepared on the basis of Contribution Margin discloses the costs separately as V...

Q: I can not figure out how to work the attached problem

A: Step 1: Determine the budgeted sales revenue

Q: Practice 2: Pet Park International sells cat food and dog food. Its monthly fixed costs average $620...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: In 2013, BMJ Plumbing Company sold 250 water heaters for $1,050 each. The water heaters carry a 5-ye...

A: 1.

Q: Recording sales transaction for Perez Computers Inc. July 1 - sold $20,000 of computers to Robertson...

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. Th...

Q: Accounting Question

A: When notes receivable are assets of the business and hence they are debited when received nd creadit...

Q: Part1. Please explain how to calculate the after stock divendend for the Balance sheet given the bel...

A: Since we are entitled to answer first question as per our honor code, we’ll answer the part 1 as you...

Q: Operating Leverage Snellville Co. reports the following data: Sales $483,900 Variable costs 329,100 ...

A: Operating leverage: It is the ratio that measures the proportion of fixed cost on the total costs an...

Q: On August 1, 2019, Rafael Masey established Planet Realty, which completed the following transaction...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Lankford Corporation operates a retail computer store. To improve delivery services to customers, th...

A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is, a...

Q: A machine that cost $100,000 has an estimated residual value of $10,000 and an estimated useful life...

A: Calculate the depreciation expense per machine hour.

Q: Trent PLLent Swifty Corporation sells a product for $50 per unit. The fixed costs are $930000 and th...

A: The breakeven point in units has been calculated by total fixed cost divided by contribution per uni...

Q: Federal Income Tax WithholdingBob Browning's weekly gross earnings for the present week were $2,770....

A: Calculate the amount of federal income tax with holdings:

Q: Exercise 7-06 a The following control procedures are used in Bunny’s Boutique Shoppe for cash disbu...

A: Click to see the answer

Q: Only need to do part B of the question

A: Required journal entries:

Q: Waterway Industries produces flash drives for computers, which it sells for $26 each. The variable c...

A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with neit...

Q: company's inventory records report the following in November of the current year:        Beginn...

A: Under LIFO inventory system, the goods received last are despatched first. Gross Profit is computed ...

Q: Contribution Margin and Contribution Margin Ratio For a recent year, McDonald’s (MCD) company-owned ...

A: Click to see the answer

Q: Brief Exercise 7-06 The cash register tape for Larkspur Industries reported sales of $10,169.80.Rec...

A: Prepare the journal entries:

Q: Recording Purchases and Shipping Terms On May 12, Digital Distributors received three shipments of m...

A: Click to see the answer

Q: View Policies Current Attempt in Progress pport Werth Company produces tie racks. Its estimated fixe...

A: Breakeven point is the situation where the company earns revenue at which a business has no profit o...

Q: Entries for Sale of Fixed AssetEquipment acquired on January 8 at a cost of $136,520, has an estimat...

A: Hence, depreciation amount to be charged every year is $7,594. The difference in acquisition cost an...

Q: Habicht company was formed in 2018 to produce a single product. The production and sales for the nex...

A: a. Compute gross profit under FIFO method for four years as shown below:

Q: Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a...

A: Click to see the answer

Q: Current Attempt in Progress rt Concord Corporation reported the following information for the curren...

A: Hence, Contribution margin is $441,000 which is calculated by subtracting the sales from the variabl...

Q: Shamrock Company is constructing a building. Construction began on February 1 and was completed on D...

A: Weighted-average cost method:Under Weighted average cost method, the company calculates a new averag...

Q: Skysong Company uses a periodic inventory system. For April, when the company sold 540 units, the fo...

A: Inventory Valuation under FIFO:"FIFO" stands for first-in, first-out, meaning that the oldest invent...

Q: How do you find the trade discount and net price of an item if the list price is $199, the chain dis...

A: Calculate the trade discount.

Q: Current Attempt in Progress Coronado Industries sells radios for $50 per unit. Th costs are $685000 ...

A: Compute variable cost per unit for new equipment as shown below:

Q: The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per p...

A: Calculate the activity rate.

Q: For 2018, Roberta is a self-employed truck driver with earnings of $45,000 from her business. During...

A: Payroll taxes: An employer is required to withhold from the wages of the employee many taxes includi...

Q: Does egg-producing chickens go on the balance sheet as inventory or as property, plant, and equipmen...

A: In poultry accounting, egg producing chicken are considered inventory as current assets and not long...

Q: The text book I am using is Hospitality Industry Financial Accounting (4th edition). I am in chapter...

A: Cash flow from operating activities relate to the cash generated from operations i.e. normal day to ...

Q: R.D. Kagen employs Audrey Lopez at a salary of $33,800 a year. Kagen is subject to employer Social S...

A: Workings: