Break even units = Fixed cost/Contribution margin per unit
= 80,000/(12-7) = 16,000
Margin of Safety
= (Sales units-Break even units) /Sales units
= (20,000-16,000)/20,000
= 20%
Firmin Company makes a product that sells for $12 per unit. The company pays $7 per...
Rooney Company makes a product that sells for $31 per unit. The company pays $18 per unit for the variable costs of the product and incurs annual fixed costs of $105,300. Rooney expects to sell 21,700 units of product. Required Determine Rooney’s margin of safety expressed as a percentage.
Gibson Company makes a product that sells for $30 per unit. The
company pays $11 per unit for the variable costs of the product and
incurs annual fixed costs of $161,500. Gibson expects to sell
22,600 units of product.
Required
Determine Gibson’s margin of safety expressed as a percentage.
(Round your answer to 2 decimal places (i.e., .2345 should
be entered as 23.45).)
Margin of safety
Solomon Company makes a product that sells for $32 per unit. The company pays $13 per unit for the variable costs of the product and incurs annual fixed costs of $159,600. Solomon expects to sell 21,500 units of product. Required Determine Solomon's margin of safety expressed as a percentage. (Round your answer to 2 decimal places (.e...2345 should be entered as 23.45).) Margin of safety
Vernon Company makes a product that sells for $33 per unit. The company pays $24 per unit for the variable costs of the product and incurs annual fixed costs of $72,900. Vernon expects to sell 22,300 units of product. Required: Determine Vernon’s margin of safety expressed as a percentage. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45))
Zachary Company makes a product that sells for $30 per unit. The company pays $11 per unit for the variable costs of the product and Incurs annual fixed costs of $165,300. Zachary expects to sell 22,100 units of product Required Determine Zachary's margin of safety expressed as a percentage. (Round your answer to 2 decimal places. (.e, 0.2345 should be entered as 23.45) Margin of safety % Reld Company is considering the production of a new product. The expected variable...
Exercise 3-11A Margin of safety LO 3-4 Solomon Company makes a product that sells for $34 per unit. The company pays $22 per unit for the variable costs of the product and incurs annual fixed costs of $98,400. Solomon expects to sell 22,400 units of product. Required Determine Solomon's margin of safety expressed as a percentage. (Round your answer to 2 decimal places. (.e., .2345 should be entered as 23.45)) Margin of safety
Exercise 3-11A Margin of safety LO 3-4 Munoz Company makes a product that sells for $31 per unit. The company pays $17 per unit for the variable costs of the product and incurs annual fixed costs of $137,200. Munoz expects to sell 21,300 units of product. Required Determine Munoz's margin of safety expressed as a percentage. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45)) Margin of safety
Fanning Company makes a product that sells for $33 per unit. The company pays $17 per unit for the variable costs of the product and Incurs annual fixed costs of $140,800. Fanning expects to sell 21,900 units of product. Required Determine Fanning's margin of safety expressed as a percentage. (Round your answer to 2 decimal places (... 2345 should be entered as 23.45).) Margin of safety Finch Corporation, which has three divisions, is preparing its sales budget. Each division expects...
Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and administrative costs are $240,000 per year. C. Use the contribution margin ratio approach. Contribution margin ratio: ___% Break-even point in units: ___ Break-even point in dollars: $___
Help Save & Exit Sub Check my wor Exercise 11-20 Margin of safety LO 11-6 Rooney Company makes a product that sells for $30 per unit. The company pays $20 per unit for the variable costs of the product and incurs annual fixed costs of $82,000. Rooney expects to sell 22.800 units of product Required Determine Rooney's margin of safety expressed as a percentage. (Round your answer to 2 decimal places (.e.,.2345 should be entered as 23.45).) Margin of safety...