Homework Answers
| Option B is the answer | |
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Margin of Safety units = Sales units - Breakeven sales Therefore if company operates at break even point, margin of safety will be zero. Comment if you face any issues |
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If a company is operating at the break-even point: Multiple Choice its contribution margin will be...
1. Determine the break-even point. 2 Compute the margin of safety and explain its significance. 3....
1. Determine the break-even point. 2 Compute the margin of safety and explain its significance. 3. Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income 5.3 CVP Analysis - Excel Given the following information complete a Cve analysis 2 for JPL, Inc.: 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 11,200 units S75 per unit...
P18-2A Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio...
P18-2A Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio and sales for target net income Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $1,800,000 Selling expenses - variable Direct materials 430,000 Selling expenses - fixed Direct labor 360,000 Administrative...
Excel SIM: CVP Analysis 1. Determine the break-even point. 2. Compute the margin of safety and...
Excel SIM: CVP Analysis 1. Determine the break-even point. 2. Compute the margin of safety and explain its significance 3. Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. 35 CVP Analysis Excel FORMULAS DATA INSERT PAGE LAYOUT REVIEW Sign In A Alignment Number Edang Conditional Formatas Cell Formatting Table Styles Styles Given the following information complete a CVP analysis Given the following...
22. If a company is operating at a profit: A) its contribution margin will not be...
22. If a company is operating at a profit: A) its contribution margin will not be equal to its fixed expenses B) its margin of safety will be equal to zero C) its fixed expenses will be equal to its variable expenses D) its selling price will be equal to its variable expense per unit E) all of the above 23. FrisCo has just purchased a new piece of equipment with the following characteristics: Purchase cost of equipment Annual cost...
1. Determine the break even point 2 Compute the margin of safety and explain its significance....
1. Determine the break even point 2 Compute the margin of safety and explain its significance. 3. Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income EERS. CVP Analysis - Excel 7 - X HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in A Alignment Number Conditional Formatas Cell Formatting Table - Soyles Cells Editing Given the following information complete a CVP...
Break Even Units, Contribution Margin Ratio, Multiple Product Breakeven, Margin of Safety, Degree of Operating Leverage...
Break Even Units, Contribution Margin Ratio, Multiple Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $9,000,000 Total variable cost 6,030,000 Contribution margin $ 2,970,000 Total fixed cost 1.898,820 Operating income $ 1,071,180 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. S per unit 1(b), Compute contribution margin per unit. Enter your answer to...
Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal....
Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most companies is to make a profit. When a company decides that it wants to earn more than the break-even point of income, it must define the amount it thinks it will realistically make. By modifying the break-even equation, the sales required to earn a target or desired amount of profit may be computed. Complete the following: If a company...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 12,150,000 Total variable cost 7,533,000 Contribution margin $ 4,617,000 Total fixed cost 2,437,776 Operating income $ 2,179,224 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest...
Which statement about the break-even point is false: Multiple Choice The break-even point is where sales...
Which statement about the break-even point is false: Multiple Choice The break-even point is where sales are equal to variable costs. The break-even point can be expressed in both units sold and in sales dollars. The break-even point is where contribution margin is equal to fixed costs. O O The break-even point is the level of sales at which point profit is zero.
Which of the following statements regarding Company A is incorrect? Multiple Choice Which of the following...
Which of the following statements regarding Company A is incorrect? Multiple Choice Which of the following statements regarding Company A is incorrect? If Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its break-even point in units is 36,000 units. If Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its variable expenses must be $20...
1. Determine the break-even point. 2 Compute the margin of safety and explain its significance. 3. Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income 5.3 CVP Analysis - Excel Given the following information complete a Cve analysis 2 for JPL, Inc.: 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 11,200 units S75 per unit...
Excel SIM: CVP Analysis 1. Determine the break-even point. 2. Compute the margin of safety and explain its significance 3. Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. 35 CVP Analysis Excel FORMULAS DATA INSERT PAGE LAYOUT REVIEW Sign In A Alignment Number Edang Conditional Formatas Cell Formatting Table Styles Styles Given the following information complete a CVP analysis Given the following...
22. If a company is operating at a profit: A) its contribution margin will not be equal to its fixed expenses B) its margin of safety will be equal to zero C) its fixed expenses will be equal to its variable expenses D) its selling price will be equal to its variable expense per unit E) all of the above 23. FrisCo has just purchased a new piece of equipment with the following characteristics: Purchase cost of equipment Annual cost...
1. Determine the break even point 2 Compute the margin of safety and explain its significance. 3. Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income EERS. CVP Analysis - Excel 7 - X HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in A Alignment Number Conditional Formatas Cell Formatting Table - Soyles Cells Editing Given the following information complete a CVP...
Break Even Units, Contribution Margin Ratio, Multiple Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $9,000,000 Total variable cost 6,030,000 Contribution margin $ 2,970,000 Total fixed cost 1.898,820 Operating income $ 1,071,180 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. S per unit 1(b), Compute contribution margin per unit. Enter your answer to...
Which statement about the break-even point is false: Multiple Choice The break-even point is where sales are equal to variable costs. The break-even point can be expressed in both units sold and in sales dollars. The break-even point is where contribution margin is equal to fixed costs. O O The break-even point is the level of sales at which point profit is zero.
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