The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $ 156,000 100.00 $ 156,000 100.00 Variable costs 93,600 60.00 46,800 30.00 Contribution margin 62,400 40.00 109,200 70.00 Fixed costs 34,350 70,400 Operating income (πB) $ 28,050 $ 38,800 X Company's margin of safety ratio (MOS%) (rounded) is:

The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $ 156,000 100.00 $ 156,000 100.00 Variable costs 93,600 60.00 46,800 30.00 Contribution margin 62,400 40.00 109,200 70.00 Fixed costs 34,350 70,400 Operating income (πB) $ 28,050 $ 38,800 X Company's margin of safety ratio (MOS%) (rounded) is:

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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	X Company	Y Company
Amount	Percent	Amount	Percent
Sales	$ 156,000	100.00	$ 156,000	100.00
Variable costs	93,600	60.00	46,800	30.00
Contribution margin	62,400	40.00	109,200	70.00
Fixed costs	34,350		70,400
Operating income (π_B)	$ 28,050		$ 38,800

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