a) Calculate the break-even sales for the month? b) Calculate the margin of safety in sales dollars? c) What is the sales Mix?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Q2: The following monthly budgeted data are available for a wholesale company:
Product
Product
Product
A
B
с
$800,000 $400,000 $200,000
640,000 240,000 140,000
$160,000 $160,000 $60,000
Sales
Variable expenses
Contribution margin
The budgeted total fixed expense is $ 150,000. Required:
a) Calculate the break-even sales for the month?
b) Calculate the margin of safety in sales dollars?
c) What is the sales Mix?
Transcribed Image Text:Q2: The following monthly budgeted data are available for a wholesale company: Product Product Product A B с $800,000 $400,000 $200,000 640,000 240,000 140,000 $160,000 $160,000 $60,000 Sales Variable expenses Contribution margin The budgeted total fixed expense is $ 150,000. Required: a) Calculate the break-even sales for the month? b) Calculate the margin of safety in sales dollars? c) What is the sales Mix?
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