1.
Break Even Sales in $ | 14,00,000 | ||
Fixed Costs in $ | 6,30,000 | ||
Contribution Margin ( % ) | Fixed Cost/Break even Sales | 6,30,000/14,00,000 | 0.45 |
variable Cost Margin ( % ) | 1-Contribution Margin ratio% | 1-0.45 | 0.55 |
2.
Variable Cost Per Unit | 11 | 0.55 |
Selling Price Per Unit | 20 | 1 |
Breakeven Sales in Units | 14,00,000/20 | 70,000 |
3.
Margin of Safety | (Current Sale level - Breakeven Sales Level)/Current Sale Level*100 | |
Margin of Safety in Units | (90,000-70,000)/90,000 | 22 |
Margin of Safety in $ | (18,00,000-14,00,000)/18,00,000 | 0.22 |
Suppose Garrett Corp.'s breakeven point is revenues of $1,400,000. Fixed costs are $630,000 Requirements 1. Compute...
Suppose Garrison Corp.'s breakeven point is revenues of $1,400,000. Fixed costs are $630,000. Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $11 per unit. 3. Suppose 90,000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of Garrison making a loss? What are the most likely reasons for this risk to increase? Requirement 1. Compute the contribution margin percentage Determine...
2. Suppose Westover Corp.'s breakeven point is revenues of $1,100,000. Fixed costs are $660.000 Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $16 per unit. 3. Suppose 90,000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of Westover making a loss? What are the most likely reasons for this risk to increase? Requirement 1. Compute the contribution margin percentage...
%E3-29 (similar to) Suppose Garrett Corp.'s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $16 per unit 3. Suppose 60,000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of Garrett making a loss? What are the most likely reasons for this risk to increase? Requirement 1. Compute the contribution...
Corp.'s breakeven point is revenues of $1,600,000. Fixed costs are $640,000. Compute the contribution margin percentage. Compute the selling price if variable costs are $15 per unit. With 70,000 units are sold. Compute the margin of safety in units and dollars. What does this tell you about the risk of the corp making a loss? What are the most likely reasons for this risk to increase?
Score: 0.15 of 1 pt 6 of 9 (6 complete) W E3-29 (similar to) Suppose Garrison Corp.'s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $16 per unit. 3. Suppose 95,000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of Garrison making a loss? What are the most likely...
GigaCo Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range extending to 200,000 units per month are as follows: BB (Click the icon to view the data.) Read the requirements. Requirement 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? Begin by identifying the formula. Sales price per unit Variable cost per unit = Contribution margin per unit The contribution...
Requirement 1. Determine the coffee shop's monthly breakeven point in the numbers of small coffees and large coffees. Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales. Show only two categories of expenses: variable and fixed. Begin by identifying the formula to compute the total breakeven point in units. (Abbreviations used: avg. = Average; CM = Contribution margin.) ( Fixed expenses + Operating income ) / ▼ = Breakeven sales in units...
Happy Toss Co. produces sports socks. The company has fixed costs of $91,000 and variable costs of S0.81 per package. Each package sells for $1.80. Requirements Compule the contribution margin per package and the contribution margin ralio. (Round your answers to Iwo decimal places.) 2. Find the breakeven point in units and in dollars, using the contribution margin approach. 1. Requirement 1. Compute the contribution margin per package and the contribution margin ratio. Begin by selecting the labels and entering...
Example 48: Fill in the effects of each of the following on breakeven point, operating income and net income using: 1 = increase, D = Decrease, NC = No Change. Breakeven point in units Net Income Breakeven point in dollars Operating Income Contribution Margin in dollars Contribution Margin Ratio Increase variable costs per unit Decrease variable costs per unit Increase variable costs in total Decrease variable costs in total Increase fixed costs Decrease fixed costs Increase selling price Decrease selling...
Grippy Co. produces sports socks. The company has fixed costs of $75,000 and variable costs of S0.75 per package. Each package sells for $1.50. Requirements 1. Compute the contribution margin per package and the contribution margin ratio. (Round your answers to two decimal places.) 2. Find the breakeven point in units and in dollars, using the contribution margin approach Requirement 1. Compute the contribution margin per package and the contribution margin ratio Begin by selecting the labels and entering the...