Calculate margin of safety in units for Mark's Used car lot: In Total Volume = 6,000...
Calculate margin of safety in units for Mark's Used car lot:
|
In Total |
|
|
Volume = 6,000 units |
|
|
Sales |
930,000 |
|
Less variable expenses |
480,000 |
|
Contribution margin |
450,000 |
|
Less fixed expenses |
424,000 |
|
Net income |
026,000 |
Homework Answers
Answer:
| Amount($) | |
| Selling price (930000/6000) | 155 |
| Contribution margin | 4,50,000 |
| Contribution per unit(450,000/6,000) | 75 |
| Break even point = Fixed costs / Contribution per unit | |
| = $424,000/ $75 = 5,653.33 units | |
| Break even sales = Quantity × Selling price per unit | |
| = 5653.33 × $155= $876,266.67 | |
| Margin of safety in value = Budgeted sales - Break even sales | |
| $930,000 - $876,266.67 | |
| = $53,733.33 i.e $53,733 |
Add Answer to:
Calculate margin of safety in units for Mark's Used car lot:
In Total
Volume = 6,000...
Problem 2-20 Points: The CGC Computer Products most recent contribution margin income statement is shown on...
Problem 2-20 Points: The CGC Computer Products most recent contribution margin income statement is shown on the worksheet. In each of the following scenarios, calculate the values indicated. (CALCULATE ALL CHANGES FROM THE BEGINNING SCENARO OF NUMBERS-hint: it may be easier to copy the base income statement and paste to all other scenarios) A. The breakeven point in dollars and units. B. The sales volume increases by 30% and the price decreases by $0.50 per unit. c. The selling price...
Please help, not sure if this is right The CGC Computer Products most recent contribution margin...
Please help, not sure if this is right
The CGC Computer Products most recent contribution margin income statement is shown on the worksheet. In each of the following scenarios, calculate the values indicated. (CALCULATE ALL CHANGES FROM THE BEGINNING SCENARO OF NUMBERS- hint: it may be easier to copy the base income statement and paste to all other scenarios) A. The breakeven point in dollars and units. B. The sales volume increases by 30% and the price decreases by $0.50...
P18-2A Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio...
P18-2A Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio and sales for target net income Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $1,800,000 Selling expenses - variable Direct materials 430,000 Selling expenses - fixed Direct labor 360,000 Administrative...
11-a. What is the margin of safety in dollars? (Do not round Intermediate calculations.) Margin olley...
11-a. What is the margin of safety in dollars? (Do not round Intermediate calculations.) Margin olley 11-5. What is the margin of safety percentage? (Round your final answers to the nearest whole percentage (1., 12 should be entered as 12).) Margin of safety % Required Information The following information applies to the questions displayed below! References eBook & Resources Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of...
1. A company sold a total of 1,000 units for total sales revenue of $65,000. The...
1. A company sold a total of 1,000 units for total sales revenue of $65,000. The company incurred total variable expenses of $45,500 and total fixed expenses of $ 14,040. Based on this, the company reported a total contribution margin of $19,500 and net operating income of $ 5,460. Use this information to answer the following questions. Assume that all units are within the relevant range. Calculate the per-unit contribution margin. (Round your answer to 2 decimal places.)? Calculate the...
Also, what is the companys margin of safety in units? if sales increases by 250 units,...
Also, what is the companys margin of safety in units?
if
sales increases by 250 units, by how much should net operating
income increase?
jestlo.. 3 The following is Allison Corporation's contribution format income statement for last month: Sales: $900,000 Variable Expenses: $600,000 Contribution Margin: $300,000 Fixed Expenses: $150,000 Net Operating Income: $ ?????? The company has no beginning or ending inventories. The company produced and sold 15,000 units last mo What would be the sales dollars required in order...
1.What is the contribution margin per unit? 2.What is the contribution margin ratio? 3.What is the...
1.What is the contribution margin per unit?
2.What is the contribution margin ratio?
3.What is the variable expense ratio?
4.If sales increase to 1,001 units, what would be the increase
in net operating income?
5.If sales decline to 900 units, what would be the net
operating income?
6.If the selling price increases by $2.50 per unit and the
sales volume decreases by 100 units, what would be the net
operating income?
7.If the variable cost per unit increases by $1.50,...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 12,150,000 Total variable cost 7,533,000 Contribution margin $ 4,617,000 Total fixed cost 2,437,776 Operating income $ 2,179,224 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point? Problem: Oslo Company prepared...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point? Problem: Oslo Company prepared...
Problem 2-20 Points: The CGC Computer Products most recent contribution margin income statement is shown on the worksheet. In each of the following scenarios, calculate the values indicated. (CALCULATE ALL CHANGES FROM THE BEGINNING SCENARO OF NUMBERS-hint: it may be easier to copy the base income statement and paste to all other scenarios) A. The breakeven point in dollars and units. B. The sales volume increases by 30% and the price decreases by $0.50 per unit. c. The selling price...
Please help, not sure if this is right
The CGC Computer Products most recent contribution margin income statement is shown on the worksheet. In each of the following scenarios, calculate the values indicated. (CALCULATE ALL CHANGES FROM THE BEGINNING SCENARO OF NUMBERS- hint: it may be easier to copy the base income statement and paste to all other scenarios) A. The breakeven point in dollars and units. B. The sales volume increases by 30% and the price decreases by $0.50...
11-a. What is the margin of safety in dollars? (Do not round Intermediate calculations.) Margin olley 11-5. What is the margin of safety percentage? (Round your final answers to the nearest whole percentage (1., 12 should be entered as 12).) Margin of safety % Required Information The following information applies to the questions displayed below! References eBook & Resources Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of...
Also, what is the companys margin of safety in units?
if
sales increases by 250 units, by how much should net operating
income increase?
jestlo.. 3 The following is Allison Corporation's contribution format income statement for last month: Sales: $900,000 Variable Expenses: $600,000 Contribution Margin: $300,000 Fixed Expenses: $150,000 Net Operating Income: $ ?????? The company has no beginning or ending inventories. The company produced and sold 15,000 units last mo What would be the sales dollars required in order...
1.What is the contribution margin per unit?
2.What is the contribution margin ratio?
3.What is the variable expense ratio?
4.If sales increase to 1,001 units, what would be the increase
in net operating income?
5.If sales decline to 900 units, what would be the net
operating income?
6.If the selling price increases by $2.50 per unit and the
sales volume decreases by 100 units, what would be the net
operating income?
7.If the variable cost per unit increases by $1.50,...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point? Problem: Oslo Company prepared...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point? Problem: Oslo Company prepared...
Most questions answered within 3 hours.
-
Under all the various types of market structures, firms
must eventually earn some economic profits for...
asked 5 minutes ago -
Consider the following fitness regime for a single locus trait
with two co-dominant alleles: w11 =...
asked 9 minutes ago -
A large cable company reports the following.
80% of its customers subscribe to its cable TV...
asked 25 minutes ago -
Please answer the question in brief.
Discuss the role of ERP in organizations. Are ERP tools...
asked 11 minutes ago -
Discuss the pros and cons of collaborative software such
as SameTime. Does it increase productivity? What...
asked 23 minutes ago -
1. Are all good samples random?
2. Magazines often report surveys giving statistics such as “63%...
asked 18 minutes ago -
Buying your in-laws a gift because it’s expected is
due to the ____________ motive of gift-giving....
asked 26 minutes ago -
Calculate the expected value, the variance, and the standard
deviation of the given random variable X....
asked 1 hour ago -
A hospital performs 100 surgeries per week. The probability that
complications after surgery occur is 10%....
asked 1 hour ago -
1 point) Given the significance level α=0.01 find the following:
(a) left-tailed z value z= (b)...
asked 1 hour ago -
Assuming you are the head of the software development unit at
Cyber.Soft, explain and justify why...
asked 34 minutes ago -
Magnesium and nitrogen react in a combination reaction to
produce magnesium nitride. 3 Mg + N2...
asked 42 minutes ago