Homework Help is Here – Start Your Trial Now!
Business
Accounting
Margin of safety a. If Kirwan Company, with a break-even point at $308,000 of sales, has actual sales of $560,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? 1. S 2. X X % b. If the margin of safety for Kirwan Company was 30%, fixed costs were $1,818,600, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)

Margin of safety a. If Kirwan Company, with a break-even point at $308,000 of sales, has actual sales of $560,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? 1. S 2. X X % b. If the margin of safety for Kirwan Company was 30%, fixed costs were $1,818,600, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

eBook Margin of safety a. If Kirwan Company, with a break-even point at $308,000 of sales, has actual sales of $560,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? 1. S 2. Show Me How X X % Feedback b. If the margin of safety for Kirwan Company was 30%, fixed costs were $1,818,600, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) Check My Work a. (Sales minus sales at break-even) divided by sales equals margin of safety. b. Sales minus variable costs equals contribution margin. Fixed costs divided by unit contribution margin equals break-even point. (Sales minus sales at break-even) divided by sales equals margin of safety G
Transcribed Image Text:eBook Margin of safety a. If Kirwan Company, with a break-even point at $308,000 of sales, has actual sales of $560,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? 1. S 2. Show Me How X X % Feedback b. If the margin of safety for Kirwan Company was 30%, fixed costs were $1,818,600, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) Check My Work a. (Sales minus sales at break-even) divided by sales equals margin of safety. b. Sales minus variable costs equals contribution margin. Fixed costs divided by unit contribution margin equals break-even point. (Sales minus sales at break-even) divided by sales equals margin of safety G
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS