Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Chapter 11, Problem 11.4.3MBA
To determine
Concept Introduction:
Margin of Safety: The projected or budgeted sale more than the break even sale is denoted by the margin of sales in amount and to calculate margin of sale in percentage we divide the amount by the sales.
To Calculate:
Margin of safety in units, dollars and in percentage.
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Students have asked these similar questions
Use the following information for the Quick Studies below. (Algo)
($ thousands)
Net sales
Current Year
$ 802,213
393,339
Prior Year
$ 453,350
134,505
Cost of goods sold
QS 13-7 (Algo) Trend percents LO P1
Determine the Prior Year and Current Year trend percents for net sales using the Prior Year as the base year. (Enter the answers in
thousands of dollars.)
Current Year:
Prior Year:
Numerator:
Trend Percent for Net Sales:
1
1
1
Denominator:
=
=
=
Trend Percent
0%
0 %
Use the following information to determine the Prior Year and Current Year trend percents for net sales using the Prior Year a
base year. (Enter the answers in thousands of dollars.)
Current
Prior
($ thousands)
Year
Year
$1,155,080 $431,000
565,989
Net sales
Cost of goods sold
127,576
Trend Percent for Net Sales:
Choose Numerator:
IChoose Denominator:
Trend Percent
%3D
Current Year:
%3D
Prior Year:
%
%D
Common-Sized Income Statement
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages.
TannenhillCompany
ElectronicsIndustryAverage
Sales
$2,740,000
100
%
Cost of goods sold
1,753,600
69
Gross profit
$986,400
31
%
Selling expenses
$602,800
18
%
Administrative expenses
219,200
7
Total operating expenses
$822,000
25
%
Operating income
$164,400
6
%
Other revenue
54,800
2
$219,200
8
%
Other expense
27,400
1
Income before income tax
$191,800
7
%
Income tax expense
82,200
5
Net income
$109,600
2
%
a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive…
Chapter 11 Solutions
Survey of Accounting (Accounting I)
Ch. 11 - Which of the following statements describes...Ch. 11 - If sales are $500,000, variable costs are...Ch. 11 - If the unit selling price is $16. the unit...Ch. 11 - Based on the data presented in Question 3, how...Ch. 11 - Prob. 5SEQCh. 11 - Describe how total variable costs and unit...Ch. 11 - How would each of the following costs be...Ch. 11 - Describe the behavior of (a) total fixed costs and...Ch. 11 - How would each of the following costs be...Ch. 11 - In cost analyses, how arc mixed costs treated?
Ch. 11 - Which of the following graphs illustrates how...Ch. 11 - Which of the following graphs illustrates how unit...Ch. 11 - Which of the following graphs best illustrates...Ch. 11 - In applying the high-low method of Cost...Ch. 11 - Prob. 10CDQCh. 11 - Prob. 11CDQCh. 11 - Prob. 12CDQCh. 11 - If insurance rates are increased, what effect will...Ch. 11 - Prob. 14CDQCh. 11 - The reliability of cost-volume-profit (CVP)...Ch. 11 - How does the sales mix affect the calculation of...Ch. 11 - Prob. 17CDQCh. 11 - Classify costs Following is a list of various...Ch. 11 - Identify cost graphs The following cost graphs...Ch. 11 - Prob. 11.3ECh. 11 - Identify activity bases From the following list of...Ch. 11 - Identify fixed and variable costs Intuit Inc....Ch. 11 - Relevant range and fixed and variable costs Third...Ch. 11 - High-low method Liberty Inc. has decided to use...Ch. 11 - High-low method for service company Miss River...Ch. 11 - Contribution margin ratio a. Matzinger Company...Ch. 11 - Contribution margin and contribution margin ratio...Ch. 11 - Break-even sales and sales to realize operating...Ch. 11 - Prob. 11.12ECh. 11 - Prob. 11.13ECh. 11 - Break-even analysis The Garden Club of Palm...Ch. 11 - Break-even analysis Media outlets such as ESPN and...Ch. 11 - Prob. 11.16ECh. 11 - Prob. 11.17ECh. 11 - Prob. 11.18ECh. 11 - Prob. 11.19ECh. 11 - Prob. 11.20ECh. 11 - Break-even sales and sales mix for a service...Ch. 11 - Operating leverage SunRise Inc. and SunSet Inc....Ch. 11 - Classify costs Peak Apparel Co. manufactures a...Ch. 11 - Break-even sales under present and proposed...Ch. 11 - Prob. 11.2.2PCh. 11 - Prob. 11.2.3PCh. 11 - Prob. 11.2.4PCh. 11 - Prob. 11.2.5PCh. 11 - Break-even sales under present and proposed...Ch. 11 - Prob. 11.2.7PCh. 11 - Prob. 11.2.8PCh. 11 - Break-even sales and cost-volume-profit graph For...Ch. 11 - Prob. 11.3.2PCh. 11 - Break-even sales and cost-volume-profit graph For...Ch. 11 - Prob. 11.3.4PCh. 11 - Prob. 11.4.1PCh. 11 - Prob. 11.4.2PCh. 11 - Prob. 11.4.3PCh. 11 - Prob. 11.4.4PCh. 11 - Prob. 11.5.1PCh. 11 - Prob. 11.5.2PCh. 11 - Sales mix and break-even sales Data related to the...Ch. 11 - Prob. 11.5.4PCh. 11 - Prob. 11.5.5PCh. 11 - Contribution margin, break-even sales,...Ch. 11 - Contribution margin, break-even sales,...Ch. 11 - Contribution margin, break-even sales,...Ch. 11 - Contribution margin, break-even sales,...Ch. 11 - Contribution margin, break-even sales,...Ch. 11 - Margin of safety a. If Go-Go Buggies Company, with...Ch. 11 - Prob. 11.2MBACh. 11 - Margin of safety Use the data from E11-12 and...Ch. 11 - Margin of safety Use the data from E11-12 and...Ch. 11 - Sales mix and margin of safety Use the data from...Ch. 11 - Prob. 11.4.2MBACh. 11 - Prob. 11.4.3MBACh. 11 - Margin of safety Using the data from P11-2,...Ch. 11 - Prob. 11.5.2MBACh. 11 - Margin of safety Using the data from P11-6....Ch. 11 - Prob. 11.6.2MBACh. 11 - Prob. 11.6.3MBACh. 11 - Prob. 11.1CCh. 11 - Break-even sales, contribution margin "Every...Ch. 11 - Break-even analysis Aquarius Games Inc. has...Ch. 11 - Variable costs and activity bases in decision...Ch. 11 - Variable costs and activity bases in decision...Ch. 11 - Prob. 11.6C
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