Summarized data for Ralph Corporation:Selling priceVariable expenses$ 200 per unit$ 150 per unit$ 1,000,000 per year25,000 per yearFixed expensesUnit salesKnowledge Check 01What is Ralph Corporation's margin of safety in dollars?$4 million$5 millionO $1 million$2.2 millionKnowledge Check 02What is Ralph Corporation's margin of safety in percentage?O 20%O 100%80%O 50%

Margin of safety in percentage is calculated by dividing the margin of safety by the total sales.

Answered: Summarized data for Ralph Corporation:…

Summarized data for Ralph Corporation: Selling price Variable expenses $ 200 per unit $ 150 per unit $ 1,000,000 per year 25,000 per year Fixed expenses Unit sales

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 7BE: Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales...

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Question

Summarized data for Ralph Corporation:
Selling price
Variable expenses
$ 200 per unit
$ 150 per unit
$ 1,000,000 per year
25,000 per year
Fixed expenses
Unit sales
Knowledge Check 01
What is Ralph Corporation's margin of safety in dollars?
$4 million
$5 million
O $1 million
$2.2 million
Knowledge Check 02
What is Ralph Corporation's margin of safety in percentage?
O 20%
O 100%
80%
O 50%

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