Margin of Safety a. If Del Rosario Company, with a break-even point at $482,400 of sales, has actual sales of $670,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. 2. % b. If the margin of safety for Del Rosario Company was 35%, fixed costs were $1,494,675, and variable costs were 65% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)
Margin of Safety a. If Del Rosario Company, with a break-even point at $482,400 of sales, has actual sales of $670,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. 2. % b. If the margin of safety for Del Rosario Company was 35%, fixed costs were $1,494,675, and variable costs were 65% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)
Chapter1: Financial Statements And Business Decisions
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Margin of Safety
a. If Del Rosario Company, with a break-even point at $482,400 of sales, has actual sales of $670,000, what is the margin of safety expressed (1) in
dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number.
1. S
2.
%
b. If the margin of safety for Del Rosario Company was 35%, fixed costs were $1,494,675, and variable costs were 65% of sales, what was the amount of
actual sales (dollars)?
(Hint: Determine the break-even in sales dollars first.)
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