FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Danny’s Lawn Equipment has actual sales of $800,000 and a break-even point of $520,000. How much is its margin of safety ratio? Group of answer choices 54% 46% 65% 35%arrow_forwardMoyas Corporation sells a single product for $20 per unit. Last year, the company's sales revenuewas $300,000 and its net operating income was $24,000. If fixed expenses totaled $96,000 for theyear, the break-even point in unit sales was:A) 12,000 units B) 14,100 units C) 9,900 units D) 15,000 unitsarrow_forwardCompany XYZ last year sold 40,000 units of a product whose contribution margin is $20.00. This year the company expects to sell only 25,000, despite reducing the unit price by $5.00 and keeping all other costs constant. The expected decrease in operating profit is: a ) $275,000.00 b) $425,000.00 c) $325,000.00 d) $375,000.00arrow_forward
- A total of 50,000 units were sold last year. The contribution margin per unit was $4, and fixed expenses totaled $50,000 for the year. This year fixed expenses are expected to increase BY $20,000, but the contribution margin per unit will remain unchanged. How many units must be sold this year to earn the same profit as was earned last year? O 37,500 O 50,000 O 17,500 O 58,500 O 55,000arrow_forward2155 Lake Sales had $2,300,000 in sales last month. The contribution margin ratio was 40% and operating profits were $180,000. What sales volume does Lake's need to yield a $370,000 operating profit?arrow_forwardDean Company has sales of $76,000, and the break-even point in sales dollars is $47,120. Determine the company's margin of safety percentage. Round answer to the nearest whole number.fill in the blank 1 %arrow_forward
- Margin of Safety The Rachel Company has sales of $550,000, and the break-even point in sales dollars is $368,500. Determine the company's margin of safety as a percent of current sales.arrow_forwardSwifty Corporation sells 2200 units of Product A annually, and 7800 units of Product B annually. The sales mix for Product A is Cannot determine from information given. 28%. 78%. 22%.arrow_forwardxZ Companys single produchas a selling pnce of 525 per unit. Last year the company reported profit of 5200,000 and variable expenses totaling 5960,000. The product has a 40% contribution margin ratio. Because of competition. XYZ Company will be forced in the current year to reduce its selling price by $2 per unit How many units must be sold in the current year to earn the same profit as was earned last year? Select one: Oa.64.000 Oc44000 0000 00 O e.116 000arrow_forward
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