Sheridan Company has sales of $2800000, variable costs of $1300000, and fixed costs of $ 700000. Sheridan's margin of safety ratio is
Q: Currently, the unit selling price is $34, the variable cost is $14, and the total fixed costs,…
A: Contribution per unit=Sale per unit-variable cost per unit=$34-$14=$20
Q: A firm expects to sell 25,700 units of its product at $11.70 per unit and to incur variable costs…
A: Introduction: Contribution margin : Deduction of all variable costs from the sales price derives the…
Q: .Analysis of Cost Structure Spring Company's cost structure is dominated by variable costs with a…
A: A cost structure refers to different sets and relative amounts of variable and fixed expenditures…
Q: Currently, the unit selling price of a product is $210, the unit variable cost is $170, and the…
A: Break-Even sales in units = Fixed cost/Contribution margin per unit
Q: The unit selling price is $75 and the variable cost per unit is $33 and the total fixed costs are…
A: Margin of safety = Actual sales - Break-even point Break-even point = Total fixed costs/PV ratio…
Q: Jasmine Incorporated sells a product for $61 per unit. Variable costs per unit are $31, and fixed…
A: Break Even Point - It Is The Point Of Production Where Total Costs Is Equal To Total Revenue. At…
Q: Calculate the per-unit contribution margin of a product that has a sale price of $200 if the…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: Vaughn Manufacturing Equipment has actual sales of $900000 and a break-even point of $540000. How…
A: The break-even sales represent the sales where there is no profit r loss. The sales revenues are…
Q: Bradley Company sells a product that has variable costs of $54 each and a sales price $79 each.…
A: Break even analysis and contribution margin analysis is an important tool in cost volume profit…
Q: Bloom Company predicts it will incur fixed costs of $255,000 and earn income of $427,500 in the next…
A: Total dollar sales = Fixed costs plus pretax income / Contribution margin ratio Variable costs =…
Q: Maggie Corp. has a selling price of $25 per unit, variable costs of $11 per unit, and fixed costs of…
A: The Break-even point is the point where the company is able to cover all its costs but does not make…
Q: Ignite Products is a price-taker. The company produces large spools of electrical wire in a highly…
A: Desired profit :— It is the calculated by multiplying amount of investment by % return on…
Q: For Kosko Company, actual sales are $ 1,200,000 and break-even sales are $ 960,000 Compute (a) the…
A: Margin of safety sales are those sales over and above break even sales. At break even point fixed…
Q: Currently, the unit selling price of a product is $390, the unit variable cost is $320, and the…
A: Breakeven is the point at which an entity is in a position of no profit and no loss. At this point,…
Q: For Sheridan Company, sales is $1400000 (7000 units), fixed expenses are $480000, and the…
A: The margin of safety is that part of the total sales that exceed the Breakeven Sales of an…
Q: Given a sales price of $300 per unit, variable cost of $180 per unit, and fixed costs of $ 150,000,…
A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…
Q: An entity determines its break-even sales is 2,500 units when the contribution margin is $15 per…
A: Break even point means a point where firm is neither earning profit nor incurring any loss.
Q: Reynold's Company has a product with fixed costs of $261,000, a unit selling price of $23, and unit…
A: Break even sales (units) = Fixed costs/Contribution margin per unit Contribution margin per unit =…
Q: Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs…
A: Margin of safety units = Actual sales - Break even sales Deduction of break even sales from actual…
Q: Calculate the Margin of Safety, expressed as a percentage of Sales, given the following data: Sales…
A: Formula, Margin of Safety (Dollars) = Actual Sales - Break Even Sales Margin of Safety…
Q: What is the correct choice? Datamatix Company has gathered the following data: Unit Sales…
A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…
Q: XYZ Company's product has a contribution margin per unit of $12 and a variable cost ratio of 90%.…
A: Selling price means the cost for which something really sells. selling cost is the sum a purchaser…
Q: Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are…
A: Margin of safety: MOS termed as Margin of safety which is defined as the difference among the actual…
Q: Tykee Company has the following data: Variable costs are 75% of the unit selling price. The unit…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: XYZ Company manufactures GPS. The selling price of each GPS is $150, variable cost $24, and fixed…
A: Formula: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin…
Q: If fixed costs are $17,000,000 with breakeven units at 400,000 and the variable cost is $17,000,000…
A: The Numerical has covered the concept of Break-Even Point. Break-Even Point is that point where the…
Q: Variable costs are 60% of the unit selling price. The contribution margin ratio is 40%. The…
A: Break-even point is the level of sales at which company covers it fixed cost or earn no profit. It…
Q: Ralley Corporation sells a single product at a price of $550 per unit. Variable cost per unit is…
A: Introduction:- CVP analysis is used to identify the changes in costs and volume affect a company's…
Q: For Sheffield Corp., sales is $1260000 (6300 units), fixed expenses are $480000, and the…
A: Calculate sales per unit:Sales per unit = (Sales amount / sales in units)Sales per unit = $1,260,000…
Q: Zhao Company has fixed costs of $342,200. Its single product sells for $173 per unit, and variable…
A: Margin of safety: Margin of safety is the point after which profit will happen in multiple…
Q: Ritz Furniture has a contribution margin ratio of 0.17. If fixed costs are $166,600, how many…
A: Breakeven=Fixed expenses/Contribution margin ratio
Q: A company has fixed costs of P150,000, a variable cost ratio of 60%, and a margin of safety ratio of…
A: Here, Fixed costs = P150,000 Variable cost ratio = 60% Margin of safety ratio = 25% Find: Amount of…
Q: Wang Co. manufactures and sells a single product that sells for $620 per unit; variable costs are…
A: Answer) Calculation of Margin of Safety in dollars Margin of Safety in dollars = Current Sales…
Q: Currently the unit selling price of a product is $200, the unit variable cost is $110, and the total…
A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…
Q: A company expects to sell 75,000 widgets at a price of $10.00. The unit variable costs are estimated…
A: Given Sales = 75,000 Per unit Price = $10.00 Variable Cost = $8.00 Fixed Cost = $125,000
Q: Compute (a) the margin of safety in dollars and (b) the margin of safety ratio with the given…
A: Margin of safety can termed as an difference between the sales of an product and break-even sales.
Q: Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $ 7 while…
A: Selling units = 20,000 Net sales = $140,000 (20,000*7) Variable cost ratio = 20% Fixed cost = 30,000
Q: Ivanhoe, Inc. developed the following information for its product: Sales price Variable cost…
A: The break-even point indicates that total units are to be sold by the business entity to recover the…
Q: Wildhorse Company has a unit selling price of $730, variable costs per unit of $500, and fixed costs…
A: Break-even-point is a point where the company suffers no gain and no loss. If a company sale below…
Q: Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable…
A: The problem the part of cvp analysisIn this the variable costs are those which change with…
Q: Bonita Industries has sales of $1200000, variable costs of $550000, and fixed costs of $300000.…
A: Contribution margin=Sale-Variable cost=$1,200,000-$550,000=$650,000
Q: Company G has the following information on its management books: Price per Unit: $8 Variable Costs…
A: TARGET SALES Target Sales is the Point of Sales Where Company Reach to its Desired Profit. Target…
Q: Assume a sales volume of 9120 units, unit selling price of $18, unit variable cost of $10, and total…
A: The question is based on the concept of Cost Accounting. The sale over and above the break even…
Q: Currently, the unit selling price of a product is $350, the unit variable cost is $290, and the…
A: Step 1: Compute the contribution margin per unit: Contribution margin per unit=Selling…
Q: Blossom Company has a unit selling price of $590, unit variable costs of $350, and fixed costs of…
A: The contribution Margin is calculated as difference between sales and variable cost. The break even…
Q: Carla Vista Company has a unit selling price of $384, unit variable costs of $254, and fixed costs…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Solomon company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If…
A: Units required to earn Targeted profits can be calculated by the formula as follows, =(Total fixed…
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- Penny Corporation desires to earn target net income of $15,000. If the selling price per unit is $51, unit variable cost is $31, and total fixed costs are $685,000, the number of units that the company must sell to earn its target net income isCompare the following two companies: Company A is a retail merchandise firm with current sales of $4,000,000 and a 45% contribution margin. Company A's fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company B’s fixed costs are $375,000. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss 1. Based on the information given, prepare a complete contribution margin income statement for Company A: Company AContribution Margin Income StatementProjected 2. Based on the information given, prepare a complete contribution margin income statement for Company B: Company BContribution Margin Income StatementProjected 3.Compute the degree of operating leverage for…Halifax Products sells a product for $118. Variable costs per unit are $67, and monthly fixed costs are $168,300. a. What is the break-even point in units? Break-Even Point units b. How many units would need to be sold to earn a target profit of $102,000? Total Required Sales units c. Assuming they achieve the level of sales required in part b, what is the margin of safety in sales dollars? Margin of Safety
- A product is priced to sell for $12 with average variable costs of $8. The company expects to ear a profit of $400,000 with its total fixed costs of $120,000. Calculate the minimum number of units that must be sold in order to reach this target return.Currently, the unit selling price of a product is $200, the unit variable cost is $160, and the total fixed costs are $408,000. A proposal is being evaluated to increase the unit selling price to $220. a. Compute the current break-even sales (units). 8,400 X units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. 5,600 X unitsurrently, the unit selling price of a product is $410, the unit variable cost is $340, and the total fixed costs are $1,176,000. A proposal is being evaluated to increase the unit selling price to $460. a. Compute the current break-even sales (units).fill in the blank 1 of 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.fill in the blank 1 of 1 units
- A projected income statement of Hailwork’s company for the coming year follows: Sales $506300 |Total Variable Cost 170865 Contribution Margin ? Total Fixed Cost 175000 Operating Income ? Compute contribution margin and contribution margin ratio Compute the Operating Income How much revenue must be earned in order to breakeven What is the effect on contribution margin ratio if the unit selling price and unit variable cost increase by 10 percent each?Fountain Corp. has a selling price of $14 per unit and variable costs of $9.80 per unit. When 18,000 units are sold, profits equaled $24,900. What is the margin of safety?BE6.5 (LO), AP For Rivera Company, variable costs are 70% of sales, and fixed costs are $210,000. Management's net income goal is $60,000. Compute the required sales needed to achieve management's target net income of $60,000. (Use the mathematical equation approach.) Compute the margin of safety and the margin of safety ratio. HAROH
- Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects to sell 15,600 units and make operating income of $172,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.P Company has provided the following data: Sales Price per unit: $50. Variable Cost per unit: $30; Fixed Cost: $135,000 Expected Sales: 20,000 units. d. Determine the margin of safety in dollars. e. If the company wants to have net income of $70,000, how many units must they sell.Oriole Company has a unit selling price of $630, variable costs per unit of $410, and fixed costs of $199,980.Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin. (a) Mathematical Equation (b) Unit contribution margin Break-even point units units