Margin of Safety = Sales - Breakeven Sales
= 1,000,000 - 750,000
= 250,000
Margin of Safety % = Margin of Safety/Sales
= 250,000/1,000,000
= 25%
Question 4 (4 marks) Balance Ltd has a breakeven point of $750,000. Their Total Sales for...
If Canace Company, with a break-even point at $465,000 of sales, has actual sales of $750,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2. % b. If the margin of safety for Canace Company was 45%, fixed costs were $1,843,875, and variable costs were 55% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in...
The Dabeth Company has sales of $400,000, and the breakeven point in sales dollars is $300,000. Determine the company's margin of safety. 75% 30% 25% 70%
[10 Marks) Hukuntsi Traders (Pty) Ltd manufactures leather bags. The following information was extracted from their budget for the year ended 31 December 2014 Selling price per unit P40 Variable cost per unit P30 Total sales 1000 units Fixed costs P8,000 Calculate the following: (where applicable round off to the nearest Pula) (a) Breakeven quantity (3 Marks) (b) Breakeven value using contribution margin ratio (4 Marks) (c) Margin of safety (by value) (3 Marks)
17. Compute the margin of safety (total sales – breakeven sales) using the following data: selling price $35 per unit variable cost $25 per unit fixed expenses $8,000 per month Total unit sales 2,500 units per month
he following information pertains to Clove Co. for the month just ended: Budgeted sales $1,000,000 Breakeven sales 700,000 Budgeted contribution margin 600,000 Cash flow breakeven 200,000 Clove’s margin of safety is A) $800,000 B) $300,000 C)$500,000 D)$400,000
D Question 3 3 pts The breakeven point in sales is the fixed cost divided by the contribution margin per unit. True O False D Question 4 3 pts The margin of safety equal actual sales-breakeven sales O True O False 3 pts D Question 5 D Question 5 3 pts machine hours can be used as an allocation base for calculating the pre determined rate True ○ False 3 pts D Question 6 rates are assigned to An unfavorable...
Lowe's total sales revenue in 2018 was $68.6 billion. Cost of sales was $46.2 billion and operating expenses were $15.8 billion. Management has analyzed these costs and determined that they behaved as follows: $7.1 billion were fixed and $44.9 billion were variable. 1. Prepare Lowe's Contribution Margin Income Statement for 2018. 2. What was Lowe's contribution margin percentage? 3. What is Lowe's breakeven point? 4. What is Lowe's current margin of safety percentage? 5. What is Lowe's current operating leverage...
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
Paragraph Question 4: (total 6 marks) AD Company estimates that variable costs will be 70% of sales and fixed costs will total $1,800,000. The selling price of the product is $10, and 700,000 units will be sold. Instructions: Using the mathematical equation (a) Compute the break-even point in units and dollars. (b) Compute the margin of safety in dollars and as a ratio. (c) Compute net income. (2 marks) (2 marks) (2 marks) Clipboard Font Paragraph Question 4: (total 6...
Biomed Pte Ltd produces a variety of syringes for the medical industry. One department makes a special syringe. The projected income statement of the department for the year ending 31 December 20X6 is as follows Special Syringe Department Budgeted Income Statement For the year ending 31 December 20X6 Sales (150,000 units $4 each) 600,000 Less: Variable costs 450,000 Contribution margin 150,000 Less: Fixed costs 105,000 Operating income 45,000 Required (a) Determine the contribution margin per unit and the breakeven point...