Homework Answers
Answer- a)- The monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal = $11250.
Explanation- Monthly margin of safety in dollars = Total sales - Break even sales
= $36250-25000
=$11250
Total sales in dollars= (Fixed cost+ Target profit)/Contribution margin ratio
= ($15000+$6750)/60%
= $36250
Where- Contribution margin ratio = 1-Variable cost ratio
= 1-.40
= .60 or 60%
Break even sales in dollars= Fixed cost/Contribution margin ratio
= $15000/60%
= $25000
b)- The monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal = Margin of safety in dollars sales/ Selling price per unit
= $11250/$0.50 per unit
= 22500 units
Add Answer to:
Yellow Sticker Company's variable expenses are 40% of sales. The company has monthly fixed expenses of...
Yellow Company's variable expenses are 40% of sales and have monthly fixed expenses of $15,000. The...
Yellow Company's variable expenses are 40% of sales and have monthly fixed expenses of $15,000. The monthly target operating income is $3,600. What is Yellow Company's operating leverage factor at the target level of operating income? What is operating income if sales volume increases 10%? A. 0.19; $3,668 B.2.06; $4,342 C. 1.24; $4,046 D. 5.17; $5,461
E7-34A (similar to) Wally's Repair Shop has a monthly target operating income of $15,000. Variable expenses...
E7-34A (similar to) Wally's Repair Shop has a monthly target operating income of $15,000. Variable expenses are 70% of sales, and monthly fixed expenses are $12,000. Read the requirements Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety - Margin of safety in dollars 0 Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income...
Adam's Repair Shop has a monthly target operating income of $12,000. Variable expenses are 70% of...
Adam's Repair Shop has a monthly target operating income of $12,000. Variable expenses are 70% of sales, and monthly fixed expenses are $9,000. Read the requirements Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. Target sales in dollars Breakeven sales in dollars Margin of safety in dollars = (Round intermediate calculations up to the nearest whole dollar and your final...
Edward's Repair Shop has a monthly target operating income of $20,000. Variable expenses are 60% of...
Edward's Repair Shop has a monthly target operating income of $20,000. Variable expenses are 60% of sales, and monthly fixed expenses are $8,000. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Requirements - X Begin by identifying the formula to compute the margin of safety Target sales in dollars - Breakeven sales in dollars = Margin of safety in dollars (Round intermediate calculations up to the nearest whole...
Foster's Repair ShopFoster's Repair Shop has a monthly target operating income of $50,000. Variable expenses are...
Foster's Repair ShopFoster's Repair Shop has a monthly target operating income of $50,000. Variable expenses are 75% of sales, and monthly fixed expenses are $11,000. Read the requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express FosterFoster's margin of safety as a percentage of target sales. 3. What is FosterFoster's operating leverage factor at the target level of operating income? 4. Assume that the company reaches its target. By what...
Wally's Repair Shop has a monthly target operating income of $50,000. Variable expenses are 75% of...
Wally's Repair Shop has a monthly target operating income of $50,000. Variable expenses are 75% of sales and monthly fixed expenses are $11,000 Read the requirements * Requirements Requirement 1. Compute the mo Begin by identifying the formula to Target sales in dollars 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Wally's margin of safety as a percentage of target sales. 3. What is Wally's operating leverage factor at the...
show work Matthew's Fish Fry has a monthly target operating income of $7,900. Variable expenses are...
show work
Matthew's Fish Fry has a monthly target operating income of $7,900. Variable expenses are 70% of sales and monthly fixed expenses are $1,290. What is the monthly margin of safety in dollars if the business achieves its operating income goal? O A. $21,443 B. $26,333 O C. $34,933 O D. $30,633 Slamburger's sells four cheeseburgers for every two regular hamburgers. A cheeseburger sells for $2.75 with a variable cost of $2.25. A regular hamburger sells for $2 with...
Yellow Company's variable expenses are 20% of sales and have monthly fixed expenses of $24,000. The...
Yellow Company's variable expenses are 20% of sales and have monthly fixed expenses of $24,000. The monthly target operating income is $4,000. What is Yellow Company's operating leverage factor at the target level of operating income? OA 0.14 OB 5.6 Oc. 7 OD 1.17 Vck to select your answer
Robert's Repair Shop has a monthly target profit of $21,000. Variable costs are 40% of sales,...
Robert's Repair Shop has a monthly target profit of $21,000. Variable costs are 40% of sales, and monthly fixed costs are $27,000. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Robert's margin of safety as a percentage of target sales. 3. Why would Robert's management want to know the shop's margin of safety? Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income...
Yellow Company's variable expenses are 30% of sales and have monthly fixed expenses of $ 1...
Yellow Company's variable expenses are 30% of sales and have monthly fixed expenses of $ 1 O. evel of operating income? e month target pera ng incomes 5.3 0. hats Ye o Company soperat ng everage actor a he get OA. 4.33 OB. 0.23 O C. 1.3 D. 3.03
E7-34A (similar to) Wally's Repair Shop has a monthly target operating income of $15,000. Variable expenses are 70% of sales, and monthly fixed expenses are $12,000. Read the requirements Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety - Margin of safety in dollars 0 Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income...
Adam's Repair Shop has a monthly target operating income of $12,000. Variable expenses are 70% of sales, and monthly fixed expenses are $9,000. Read the requirements Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. Target sales in dollars Breakeven sales in dollars Margin of safety in dollars = (Round intermediate calculations up to the nearest whole dollar and your final...
Edward's Repair Shop has a monthly target operating income of $20,000. Variable expenses are 60% of sales, and monthly fixed expenses are $8,000. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Requirements - X Begin by identifying the formula to compute the margin of safety Target sales in dollars - Breakeven sales in dollars = Margin of safety in dollars (Round intermediate calculations up to the nearest whole...
Wally's Repair Shop has a monthly target operating income of $50,000. Variable expenses are 75% of sales and monthly fixed expenses are $11,000 Read the requirements * Requirements Requirement 1. Compute the mo Begin by identifying the formula to Target sales in dollars 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Wally's margin of safety as a percentage of target sales. 3. What is Wally's operating leverage factor at the...
show work
Matthew's Fish Fry has a monthly target operating income of $7,900. Variable expenses are 70% of sales and monthly fixed expenses are $1,290. What is the monthly margin of safety in dollars if the business achieves its operating income goal? O A. $21,443 B. $26,333 O C. $34,933 O D. $30,633 Slamburger's sells four cheeseburgers for every two regular hamburgers. A cheeseburger sells for $2.75 with a variable cost of $2.25. A regular hamburger sells for $2 with...
Yellow Company's variable expenses are 20% of sales and have monthly fixed expenses of $24,000. The monthly target operating income is $4,000. What is Yellow Company's operating leverage factor at the target level of operating income? OA 0.14 OB 5.6 Oc. 7 OD 1.17 Vck to select your answer
Robert's Repair Shop has a monthly target profit of $21,000. Variable costs are 40% of sales, and monthly fixed costs are $27,000. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Robert's margin of safety as a percentage of target sales. 3. Why would Robert's management want to know the shop's margin of safety? Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income...
Yellow Company's variable expenses are 30% of sales and have monthly fixed expenses of $ 1 O. evel of operating income? e month target pera ng incomes 5.3 0. hats Ye o Company soperat ng everage actor a he get OA. 4.33 OB. 0.23 O C. 1.3 D. 3.03
Most questions answered within 3 hours.
-
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 54 minutes ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 1 hour ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 39 minutes ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 1 hour ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 1 hour ago -
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 2 hours ago -
evaluating an expression using only one digit and + and - as
operators ....3+5-1+7-5+8
-----------------------
stack...
asked 2 hours ago -
Two concentric current loops lie in the same plane. The smaller
loop has a radius of...
asked 2 hours ago -
1)Which of the following is an
important difference between qualified and nonqualified retirement
plans?
a. Qualified...
asked 3 hours ago -
What's the streaming business's problem on the
horizon?
asked 4 hours ago -
I need help with writing the conclusion for this online lab
report
Abstract
By testing the...
asked 4 hours ago -
For the reaction 1N2+3H2-----> 2NH3, would the reaction rate
trend be: delta[NH3]/ delta t = -2...
asked 4 hours ago