Music Corporation recorded sales of $2,235,245 for the most recent year. The company's breakeven sales point (in dollars) is $1,650,000, and its margin of safety ratio (MOS%) at the current sales level is 26%. What sales (in dollars) would be needed to increase the company's MOS% to 38%? Multiple Choice $2,277,000.

Music Corporation recorded sales of $2,235,245 for the most recent year. The company's breakeven sales point (in dollars) is $1,650,000, and its margin of safety ratio (MOS%) at the current sales level is 26%. What sales (in dollars) would be needed to increase the company's MOS% to 38%? Multiple Choice $2,277,000.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7BE: Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales...

See similar textbooks

Similar questions

Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Margin of Safety Quick Inc. has sales of $36,400,000, and the break-even point in sales dollars is $24,024,000. Determine the company's margin of safety as a percent of current sales. Enter your answer as a whole number. %
Quick Inc. has sales of $36,400,000, and the break-even point in sales dollars is $24,024,000. Determine the company’s margin of safety as a percent of current sales. Enter your answer as a whole number.fill in the blank 1 %
Jonick Company has sales of $460,000, and the break-even point in sales dollars is $372,600. Determine the company's margin of safety as a percent of current sales.___ %
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.
Dean Company has sales of $240,000, and the break-even point in sales dollars is $127,200. Determine the company's margin of safety percentage. Round answer to the nearest whole number. %
The Rachel Company has sales of $820,000, and the break-even point in sales dollars is $672,400. Determine the company's margin of safety as a percent of current sales.
Jonick Company has sales of $740,000, and the break-even point in sales dollars is $547,600. Determine the company's margin of safety as a percent of current sales. Enter your answer as a whole number.fill in the blank 1 %
In March, James Electronics had sales of $2,550,000 (25,500 units), total variable expenses of $1,275,000, and total fixed expenses of $825,000. Required: 1. What is the company's CM ratio? CM ratio % A 2. Using the CM ratio, calculate the break-even level of sales in dollars. Break-even level of sales in dollor 3. What is the break-even level of sales in units? Break-even level of sales in units units
a. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000, what is the margin of safety evpressed (1) in doilars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2.
Flamengo Co is a sporting goods manufacturing company. Last year, report the following information: Sales S700,000 Cost of goods sold $130,000 Selling and administrative expense $260,000 At the beginning of the year, the value of operating assets was $800,000. At the end of the year, the value of operating assets was $1,200,000. Flamengo- Co. requires a minimum rate of return of 15%. Calculate the Margin. Round all numbers to two decimal places. Do not answer as a percentage. For example, if the Margin is 17.63%, you should type 0.18.
Awtis Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $360,000 and the variable expenses are 45% of sales. Given this information, the actual profit is: Multiple Choice $66,000 $18,000 $49,500 $96,000