CALCULATION OF CONTRIBUTION MARGIN | ||||
PARTICULARS | AMOUNT | |||
Selling Price Per Unit= | $ 550 | |||
Less: Variable Cost Per Unit | $ 297 | |||
Contribution Margin Per Unit | $ 253 | |||
CALCULATION OF THE BREAK EVEN POINT OF SALES | ||||
Break Even point = Fixed Cost / Contribution Margin Per Unit | ||||
Break Even point = | ||||
Fixed Cost = | $ 9,66,000 | |||
Divide By | "/" By | |||
Contribution Margin Per Unit = | $ 253 | |||
Break Even point = | 3,818 | Units | ||
So Break Even Sales = 3,818 Unit X $ 550 = | 21,00,000 | |||
Margin of Safety = Current Sales Level - Break Even Sales | ||||
Margin of Safety = $ 4,300,000 - $ 2,100,000 | ||||
Margin of Safety = $ 2,200,000 | ||||
So, Answer = Option 2 = $ 2,200,000 / - | ||||
Flannigan Company manufactures and sells a single product that sells for $550 per unit; variable costs...
Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars for Flannigan Company. Multiple Choice $1,560,000. $2,000,000. $2,200,000. $2,895,652. $2,460,000.
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MC Qu. 159 Flannigan Company manufactures and sells... 005 variable costs are $378. Annual fixed costs are $993,600 Current sales Flannigan Company manufactures and sells a single product that sells for $700 per volume is $4,360,000. Compute the contribution margin per unit 10641
Flannigan Company manufactures and sells a single product that sells for $580 per unit, variable costs are $319. Annual fixed costs are $958,500. Current sales volume is $4,330,000. Compute the contribution margin per unit. Multiple Choice Ο Ο Ο Ο Ο A company's product sells at $12.22 per unit and has a $5.33 per unit variable cost. The company's total fixed costs are $96,900 The contribution margin per unit is: Multiple Choice Ο $8.06. Ο $5.33. Ο $6.89. Ο $12.22....
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