Question

For the current year, Power Cords Corp. expected to sell 43,000 industrial power cords. Fixed costs were expected to total $1
90.52%. 92.96%. 99.28%. 91.40%. 0 . 97.19%
0 0
Add a comment Improve this question Transcribed image text
Answer #1
margin of safety
sales (43000*4750)= 204250000
BEP (sales) (1,815,000/1500)*4750= 5747500
margin of safety 198502500
margin of saftey percentage = margin of safety/actual sales
198502500/204250000
97.19% answer
Add a comment
Know the answer?
Add Answer to:
For the current year, Power Cords Corp. expected to sell 43,000 industrial power cords. Fixed costs...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 5 Cleaning Care Inc. expects to sell 10,000 mops. Fixed costs (for the year) are expected...

    5 Cleaning Care Inc. expects to sell 10,000 mops. Fixed costs (for the year) are expected to be $10,000 unit sales price is expected to be $12, and unit variable costs are budgeted at $7. Cleaning Care's margin of safety ratio (MOS %) is: Multiple Choice Multiple Choice 5 40% O 85% O 80% О O 90% O 20%

  • Mullis Corp. manufactures DVDs that sell for $5.10. Fixed costs are $42.000 and variable costs are...

    Mullis Corp. manufactures DVDs that sell for $5.10. Fixed costs are $42.000 and variable costs are $3.60 per unit Mullis can buy a newer production machine that will increase fixed costs by $8,400 per year, but will decrease variable costs by $0.30 per unit. What effect would the purchase of the new machine have on Mullis' break-even point in units? Multiple Choice 4,667 unit increase O 13,826 unit decrease o 5,600 unit increase o 4,667 unit decrease. o No effect...

  • Knox Corp has a selling price of $14, variable costs of $11.34 per unit, and fixed...

    Knox Corp has a selling price of $14, variable costs of $11.34 per unit, and fixed costs of $25,500. If Knox sells 9,500 units, the contribution margin ratio will equal: Multiple Choice 19.00% 11.12% 7.88% 252.70%

  • CC Corp has the following budget amounts for the current year: $1,200,000 for prevention costs and...

    CC Corp has the following budget amounts for the current year: $1,200,000 for prevention costs and $960,000 for appraisal costs. Internal failure equnis $100 per fsted hem and external failure has a total budget of $720,000 The Product Testing department has proposed a new method of testing products. It management decides to implement the new method, $2.40 per unit of appraisal costs will be saved, up to a level of 150,000 tests. No additional savings are expected past the 150,000...

  • Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:...

    Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Expected Quantity 250 1,500 2,000 4,000 Expected Cost Overhead Item Cost Driver $ 59,500 Number of setups Setup costs Ordering costs Maintenance Power Total Overhead 49,000 Number of orders 138,000 Machine hours 29,500 Kilowatt hours $ 276,000 Total direct labor hours budgeted - 2,000 hours The following actual data applies to one of the products completed during the year: Product X Direct materials Direct...

  • White Company sells flags with team logos. White has fixed costs of $600,000 per year plus...

    White Company sells flags with team logos. White has fixed costs of $600,000 per year plus variable costs of $8.00 per flag. Each flag sells for $20.00. Read the requirements. First, select the formula to compute the required sales in units to break even. Target profit Rearrange the formula you determined above and compute the required number of flags to break even. The number of flags White must sell each year to break even is Requirement 2. Use the contribution...

  • Toler Company sells flags with team logos. Toler has fixed costs of $900,000 per year plus...

    Toler Company sells flags with team logos. Toler has fixed costs of $900,000 per year plus variable costs of $10.00 per flag. Each flag sells for $25.00. Read the requirements. Require 1 Requirements - X - to break even. First, se 1 = Target profit Rearrar In. The nu 1. Use the equation approach to compute the number of flags Toler must sell each year to break even. 2. Use the contribution margin ratio approach to compute the dollar sales...

  • Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18.Shadee's beginning and end...

    Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18.Shadee's beginning and ending finished goods Inventories for May are 75 and 50 units, respectively. Ending finished goods Inventory for June will be 60 units. value: 1.11 points Required inform Required: 1. Determine Shadee's budgeted total sales for May and June May June Buopeted Total Sales Budgeted Total Sales 2. Determine Shadee's budgeted production in units for May and June. May June...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT