Contribution margin = (Sale - variable cost)/ sales
1800000-1350000/1800000 = 25%
Break even point = Fixed cost/Contribution margin
75000/25% = 300000
Margin of safety % = (Sales - BEP)/Sales
1800000-300000/1800000 = 83.33%
Margin of safety in Units = Actual Sales unit * Margin of safety % calculated above = 18000*83.33% = 15000
The following monthly data was available for Purple Company Selling price $100 Unit variable expenses $75...
#12 The following monthly data are available for a company and its only product Unit selling price $38 Unit variable expenses $25 Total fixed expenses $39,000 Actual monthly sales 8,000 units What was the margin of safety in dollars for the company during the month? a. $180,500 b. $118,000 c.$119,800 d. $190,000 e. None of the above
The following monthly data are available for the Winfast Company and its only product: Unit selling price $36 Unit variable expenses $28 Total fixed expenses $51,000 Actual sales of the month of March 7,000 The margin of safety for the company during March was:
The following monthly data are available for Crane Company which produces only one product: Selling price per unit, $44; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 7000 units. How much is the margin of safety for the company for June?
QUESTION 7 The following monthly data are available for Seasons Company which produces only one product: Selling price per unit, 542; Unit variable expenses, 514 Total fied expenses, 570,000: Actual sales for the month of June 3,000 units. How much is the margin of safety for the company for June? $14.000 21.000 $70,000 $2.500
Question 1 Question 1 of 10 2 points The following monthly data are available for Lumberyard Company, which produces only one product: Selling price per unit, 542: Unit variable expenses, $14: Total fixed expenses, 542,000; Actual sales for the month of June, 3,000 units. How much is the margin of safety for the company for June? $42.000 $63,000 $84,000 $1,500 MacBook Pro
The following information exists for ABC Company: Selling price per unit: $30 Variable expenses per unit: $21 Fixed expenses for the period: $60,000 Sales volume in units: 10,000 1. If advertising of $15,000 is spent to increase sales volume by 2,000 units, operating income will increase by ?? 2. Based on the information given above, ABC Company's contribution margin ratio will be ?? ------------------------------------------------------------------------------------------ The following information exists for ABC Company: Selling price per unit = $60 Variable expenses...
Multiple Choice Question 140 The following monthly data are available for Crane Company, which produces only one product: Selling price per unit, $38; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units. How much is the margin of safety for the company for June? $84000 $9500 $1750 $42000
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses per unit Fixed expenses per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relations hips Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit ? per unit ? per unit ? per unit CM ratio Variable expense ratio ? Compute...
Multiple Choice Question 140 The following monthly data are available for Vaughn Manufacturing, which produces only one product: Selling price per unit, $44; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 6000 units. How much is the margin of safety for the company for June? $202400 O $1400 O $84000 O $42000
Saved Help Save & Exit Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Per Unit $75 Percent of Sales 100% Selling price Variable expenses Contribution margin 51 $24 32% Fixed expenses are $75,000 per month and the company is selling 4,000 units per month Exercise 5-5 Part 2 2-a. Refer to the original data. How much will net operating...