Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display...

Question

Question

Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers

Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit vari

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

1.

Breakeven point = Fixed cost/Contribution margin per unit

= (481,950+387,702)/[(11.70-1.87-1.70-0.57-0.42]

= 121,800

Margin of Safety = Sales - Breakeven sales

= 216,700 - 121,800

= 94,900

Margin of Safety = 94,900 * 11.70

= 1,110,330

Add a comment

Answer 2

Similar Homework Help Questions

Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retai...

Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $9.52 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $297,600 per year. Administrative cost (all fixed) totals $225,680. Comer expects to sell 241,500 strings of light next year. Required: 1. Calculate the break-even point in units. units 2. Calculate the margin...
Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display...

Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $11.84 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $445,536 per year. Administrative cost (all fixed) totals $339,976. Comer expects to sell 188,900 strings of light next year. Required: 1. Calculate the break-even point in units. units 2. Calculate the margin...
Margin of Safety Comer Company produces and sells strings of colorful Indoor/outdoor lights for holiday display...

Margin of Safety Comer Company produces and sells strings of colorful Indoor/outdoor lights for holiday display to retailers for $11.70 per string. The variable costs per string are as follows: $1.87 Direct materials Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $481,950 per year. Administrative cost (all fixed) totals $387.702. Comer expects to sell 216,700 strings of light next year. Required: 1. Calculate the break-even point in units, units 2. Calculate the margin...

Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to reta...

Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $11.76 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $540,000 per year. Administrative cost (all fixed) totals $385,200. Comer expects to sell 238,100 strings of light next year. Required: 1. Calculate the break-even point in units. units 2. Calculate the margin...
Calcu Margin of Safety Chase Company produces and sells strings of colourful indoor/outdoor lights for holiday...

Calcu Margin of Safety Chase Company produces and sells strings of colourful indoor/outdoor lights for holiday display to retailers for $11.82 per string. The variable costs per string are as follows: Direct materials Direct labour Variable overhead Variable selling $1.87 1.70 0.57 0.42 Fixed manufacturing cost totals $334,750 per year. Administrative cost (all fixed) totals $398,500. Chase expects to sell 408,250 strings of light next year. Required: Round contribution margin ratio to four decimal places. If required, round your answers...
Margin of Safety Head-First Company plans to sell 4,920 bicycle helmets at $74 each in the...

Margin of Safety Head-First Company plans to sell 4,920 bicycle helmets at $74 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 1,707. Required: 1. Calculate the margin of safety in terms of the number of units. units 2. Calculate the margin of safety in terms of sales revenue....

Question 4 Yuan SDN BHD (YSB) produces and sells strings of colourful indoor lights for holiday...

Question 4 Yuan SDN BHD (YSB) produces and sells strings of colourful indoor lights for holiday display to retailers for RM 8.42 per strings. The variables costs per strings are as follows: RM Direct materials 1.87 Direct labor 1.70 Variables factory overhead 0.57 Variables selling expenses 0.42 Fixed factory overhead cost totals RM245,650 per year. Fixed administrative cost totals RM 301,505. YSB expects to sell 225,000 strings of light next year. Required : a) calculated break even point in units...
QUESTION 1 Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75...

QUESTION 1 Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $100,500. Required: Calculate the degree of operating leverage. (Round your answer to the nearest tenth.) __________ QUESTION 2 Margin of...
Margin of Safety Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in...

Margin of Safety Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 2,000. Required: 1. Calculate the margin of safety in terms of the number of units. units 2. Calculate the margin of safety in terms of sales...

Margin of Safety Head-First Company plans to sell 4,870 bicycle helmets at $68 each in the...

Margin of Safety Head-First Company plans to sell 4,870 bicycle helmets at $68 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 2,152. Required: 1. Calculate the margin of safety in terms of the number of units. units 2. Calculate the margin of safety in terms of sales revenue....

Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display...

Homework Answers