Margin of safety = Actual sales - Break even sales
So, the answer is : Actual sales and break-even sales.
The margin of safety is the difference between: Multiple Choice Ο target sales and budgeted sales....
Multiple Choice Question 156 Sheffield Corp. had actual sales of $1200000 when break-even sales were $960000. What is the margin of safety ratio? 25% 20% Ο Ο Ο 75% O 80%
Awtis Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $366,000 and the variable expenses are 45% of sales. Given this information, the actual profit is: Multiple Choice Ο Ο 697600 Ο $67100 Ο $18,300 Ο $50,325 Kuzio Corporation produces and sells a single product. Data concerning that product appear below Selling price Variable expenses Contribution margin Per Unit $140 56 $ 84 Percent of Sales 100% 40% 60% The company...
Mastery Problem: Target Income and Margin of Safety 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...
What was James's flexible budget contribution margin for July? Multiple Choice Ο $59100 Ο Ο $72.600. Ο $65.000 Ο 551.500 James Manufacturing had the following information available for July Actual Results 14,500 Flexible Budget Variance Flexible Budget Sales Activity Variance 1, eeeu ? Master Budget $13,500F Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin $91,75€ $100,000 ? $137, eee $ 8, 2500 $9,000F $7,600U $ 46,000 ? $65,000 What was James's flexible budget contribution margin...
Awtis Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $296,400 and the variable expenses are 45% of sales. Given this information, the actual profit is: Multiple Choice $79,040 0 $54,340 $14,820 $40,755
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...
Multiple Choice Question 156 Coronado Industries had actual sales of $1000000 when break-even sales were $650000. What is the margin of safety ratio? 35% 46% 54% 65%
Exercise #5: Margin of Safety and Target Net Income Hakala Corporation makes surfboards that sell for $5,600 each. For the upcoming year, management expects fixed costs to total $3,200,000 and variable costs to be $4,200 per unit. Compute the following: (a) break-even point in dollars using the contribution margin ratio, (b) the margin of safety and margin of safety ratio assuming actual sales are $13,824,000, and (c) the sales dollars required to earn net income of $4,100,000.
Question S Answer the following multiple choice questions: (15 mark Answer The margin of safety is A the eces of budgeted or actual sales over budgeted or actual variable expenses B) the escess of budgeted or actual sales over budgeted or actual fixed expenses C) the encess of budgeted or actual sales over the break-even volume of sales D) the escess of budgeted net operating income over actual net operating income Sparks Company has a cash balance of $7,500 on...
facility-level cost product-sustaining cost management-level cost 4.....is the difference between the budgeted (expected sales and breakeven sales. (3 Points) Actual sales Margin of safety percentage Expected sales Margin of safety