A: 300,000
B: 400,000
C: 500,000
D: 800,000
Ans. | Option A $300,000 | ||
*Margin of safety is the excess amount of budgeted sales over break even sales. | |||
Margin of safety = Budgeted sales - Break even sales | |||
$1,000,000 - $700,000 | |||
$300,000 | |||
A: 300,000 B: 400,000 C: 500,000 D: 800,000 The following pertains to Upton Co. for the...
The following pertains to Upton Co. for the year ending December 31, 2016: Budgeted Sales $ 1,050,000 Break-even Sales 710,000 Budgeted Contribution Margin 610,000 Cashflow Break-even 205,000 Upton's margin of safety is: (CPA adapted) A. $505,000. B. $845,000. C. $440,000. D. $340,000.
he following information pertains to Clove Co. for the month just ended: Budgeted sales $1,000,000 Breakeven sales 700,000 Budgeted contribution margin 600,000 Cash flow breakeven 200,000 Clove’s margin of safety is A) $800,000 B) $300,000 C)$500,000 D)$400,000
The following monthly budgeted data are available for the Stark Company: Product A $500,000 Product B $300,000 Product $900,000 Sales Variable expenses 300,000 210,000 720,000 Contribution margin $200,000 $90,000 $180,000 Budgeted operating income for the month is $220,000. Required: a) Calculate the break-even sales for the month. b) Calculate the margin of safety. c) Calculate the degree of operating leverage.
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23. Albany Industries produces two products. Information about the products is as follows: Product 1 Product 2 Units produced and sold 4,000 10.000 Selling price per unit $15 $13 Variable costs per unit The company's fixed costs totaled $70,000, of which $15.000 can be directly traced to Product 1 and $40,000 can be directly traced to Product 2. The effect on the firm's if Product 2 is dropped would be a A. $10,000 increase B. $35,000 increase C. $35,000 decrease...
Contribution Margin Fixed Cost Foxx Company 0.25 100,000 Beyonce. In 0.8 400,000 $ $ Sales $ 600,000 Foxx Company Beyonce, Inc. Sales Variable Cost Contribution Margin Fixed Cost Net Operating Income NOIS 100,000 200,000 300,000 400,000 500.000 600.000 700.000 800,000 900.000 1,000,000 1,100.000 1.200.000 1.300.000 1.400,000 1,500,000 1,600,000 1,700,000 1,800,000 1,900,000 2,000,000
The following information pertains to Tiller Co.: Sales $ 770,000 Variable Costs 154,000 Fixed Costs 37,600 What is Tiller's break-even point in sales dollars? (CPA adapted) Multiple Choice $37,600. $191,600. $154,000. $47,000.
19) The following information was provided by Jimbob Co. for the year ended. COG manufactured 500,000 Ending finished goods inventory 100,000 Sales 800,000 Gross margin 200,000 What was the beginning finished goods inventory? 300,000 200,000 100,000
Required information The following information applies to the questions displayed below.) Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $200,000. The maximum output capacity of...
The following information was derived from an Income Statement when 20,000 units were sold. Sales $1,250,000 Variable Costs 250,000 Contribution Margin $1,000,000 Fixed Costs 400,000 Net Income $ 600,000 Determine the break-even point in units sold. What is the margin of safety? How many units must be sold if a Net Income of $800,000 is desired?