Question

The Proportion Challenged Candy Co. makes and sells boxes of chocolate candy. Proportion has fixed expenses...

The Proportion Challenged Candy Co. makes and sells boxes of chocolate candy. Proportion has fixed expenses of $250,000 each month plus variable expenses of $5.25 per box of candy. Proportion sells each box of candy for $9.75.

What is December's margin of safety (in dollars and cents)?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

fized enpenses= 2,50,000 Given dita s eling price 915 Vaicuble enperye 5 a5 Cendilouten margin celpse- vsiable 975-5.25 enp 4

Add a comment
Know the answer?
Add Answer to:
The Proportion Challenged Candy Co. makes and sells boxes of chocolate candy. Proportion has fixed expenses...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The Proportion Challenged Candy Co. makes and sells boxes of chocolate candy. Proportion has fixed expenses...

    The Proportion Challenged Candy Co. makes and sells boxes of chocolate candy. Proportion has fixed expenses of $250,000 each month plus variable expenses of $5.25 per box of candy. Proportion sells each box of candy for $9.75. Compute the contribution margin of each box of candy. Compute the number of boxes of candy that Proportion must sell each month to break even. Round up to the nearest whole box. Compute the contribution margin ratio for a box of candy ....

  •    Product Mix with Limited Resources: Chocolate Extreme sells both hard candy and chocolate candy. It currently...

       Product Mix with Limited Resources: Chocolate Extreme sells both hard candy and chocolate candy. It currently takes 1 hour to produce a batch of chocolate candy, and 2 hours to produce a batch of hard candy.   Given the current factory space, the company can work a total of 600 hours per month. The company feels that the current demand for chocolate candy would support the sale of up to 400 batches per month, while current demand for hard candy would...

  • Zhao Co. has fixed costs of $286,200. Its single product sells for $163 per unit

    QS 18-11 Margin of safety LO P2 Zhao Co. has fixed costs of $286,200. Its single product sells for $163 per unit, and variable costs are $110 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales. 

  • Ozark Metal Co. makes a single product that sells for $42 per unit. Variable costs are...

    Ozark Metal Co. makes a single product that sells for $42 per unit. Variable costs are $27.30 per unit, and fixed costs total $65,415 per month. a. Calculate the number of units that must be sold each month for the firm to break even b. Assume current sales are $272,000. Calculate the margin of safety and the margin of safety ratio. c. Calculate the operating income if 5,000 units are sold in a month. d. Calculate operating income if the...

  • Zhao Co. has fixed costs of $403,200. Its single product sells for $183 per unit, and...

    Zhao Co. has fixed costs of $403,200. Its single product sells for $183 per unit, and variable costs are $120 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales.

  • CVP analysis -what if questions. sales mix ozark metal co. makes a single product that sells...

    CVP analysis -what if questions. sales mix ozark metal co. makes a single product that sells for $42 per unit. variable cost $27.30 per unit and fixed costs total $65,415. required: a. calculate the number the number of units must be sold each month for the firm to break even b assume current sales are $220,000. calculate the margin of safety and the margin of safety ratio c. calculate opoerating income if 5,000 units are sold in a month d...

  • Monterey Co. makes and sells a single product. The current selling price is $15 per unit....

    Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $31,900 per month. (Unless otherwise stated, consider each requirement separately.) a. Calculate the break-even point expressed in terms of total sales dollars and sales volume. (Do not round intermediate calculations.) break even sales = break even volume = units b. Calculate the margin of safety and the margin of safety ratio. Assume current sales...

  • CVP analysis—what-if questions; sales mix issue Ozark Metal Co. makes a single product that sells for...

    CVP analysis—what-if questions; sales mix issue Ozark Metal Co. makes a single product that sells for $42 per unit. Variable costs are $27.30 per unit, and fixed costs total $65,415 per month. Required: a. Calculate the number of units that must be sold each month for the firm to break even. b. Assume current sales are $220,000. Calculate the margin of safety and the margin of safety ratio. c. Calculate operating income if 5,000 units are sold in a month....

  • Yellow Sticker Company's variable expenses are 40% of sales. The company has monthly fixed expenses of...

    Yellow Sticker Company's variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for $0.50. The monthly target operating! income is $6,750. a. What is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal? in dollars b. What is the monthly margin of safety in units if Yellow Sticker Company achieves its operating income goal? units

  • Zhao Co. has fixed costs of $245,000. Its single product sells for $155 per unit, and...

    Zhao Co. has fixed costs of $245,000. Its single product sells for $155 per unit, and variable costs are $106 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales. Dollars Percent Margin of safety % US-Mobile manufactures and sells two products, tablet computers and smartphones, in the ratio of 4:2. Fixed costs are $90,860, and the contribution margin per composite unit is $118. What number...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT