2. What is the expected contribution margin ratio? Round to the nearest whole percent.3. Determine the break-even sales in units and dollars.UnitsunitsDollars4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales?2$5. What is the expected margin of safety in dollars and as a percentage of sales?Dollars:Percentage: (Round to the nearest whole percent.)%6. Determine the operating leverage. Round to one decimal place. Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is thereforeassumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments duringthe year. A summary report of these estimates is as follows:EstimatedEstimated Variable CostFixed Cost(per unit sold)Production costs:Direct materials$22Direct labor14Factory overhead$414,00011Selling expenses:Sales salaries and commissions86,000Advertising29,100Travel6,500Miscellaneous selling expense7,1004Administrative expenses:Office and officers' salaries84,100Supplies10,3002Miscellaneous administrative expense9,7002Total$646,800$60It is expected that 7,920 units will be sold at a price of $200 a unit. Maximum sales within the relevant range are 10,000 units.Required:1.Prepare an estimated income statement for 20Y7.

Contribution Margin is the difference between Sales and Variable Cost. Break Even Point is a point…

2. What is the expected contribution margin ratio? Round to the nearest whole percent. % 3. Determine the break-even sales in units and dollars. Units units Dollars 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 2$ 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars: $ Percentage: (Round to the nearest whole percent.) % 6. Determine the operating leverage. Round to one decimal place.

2. What is the expected contribution margin ratio? Round to the nearest whole percent. % 3. Determine the break-even sales in units and dollars. Units units Dollars 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 2$ 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars: $ Percentage: (Round to the nearest whole percent.) % 6. Determine the operating leverage. Round to one decimal place.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please answer 2.4 and 2.5
If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Select one: a. MS=40000 and MS (%)=8.16 b. MS=60000 and MS (%)=15.15 c. MS=72000 and MS (%)=16.42 d. MS=40000 and MS (%)=8.89
How many statements below regarding margin of safety are correct? 1. It is the amount by which sales can be reduced without incurring a loss. 2. It is the difference between budgeted sales and breakeven sales. 3. It can be expressed in terms of unit, pesos or percentage of sales. 4. Its presence indicates that the company expects profit. 5. The product of margin of safety units and unit contribution margin is the projected profit for the period. 6. The higher the margin of safety, the lower is the risk of incurring operating loss. 3 4
O d. Contribution margin - fixed expenses - profit = 0 O e. Sales - fixed expenses - variable expenses = 0 Holding other factors constant, a company's contribution margin per unit will increase with: a. All answers given are NOT correct. b. any decrease in the selling price per unit O c. any increase in variable cost per unit O d. increase in its total fixed costs e. any increase in quantity sold. PAGE NEXT PA COLL CET 0001 A
3. Compute the margin of safety. Margin of safety in dollars Margin of safety percentage 4. Compute the degree of operating leverage. Sales Variable expenses Contribution margin Fixed expenses Net operating income Degree of operating leverage $3,300 146.67%
Now suppose that annual unit sales, variable cost, and unit price are equal to their respective expected values—that is, there is no uncertainty. Determine the company's annual profit for this scenario. Round answer to a whole number, if needed.$
Q5 From the following particulars you are required to calculate (a) PIV ratio and (b) Break-even point Le) Margin of Safety Actual sales OMR. 200000 Variable cost OMR. 120000 Fixed cost OMR. 45000 Also calculate the sales required to maintain the profit OMR 72000.
• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?
How do you calculate the break-even point in sales? Contribution margin fixed costs Fixed costs total sales Profit variable costs Fixed costs contribution margin % 0,000