Sheridan Company has sales of $2800000, variable costs of $1300000, and fixed costs of $700000. Sheridan's margin of safety ratio is

MARGIN OF SAFETYSales Above the Break-Even Point is Called Margin of Safety Sales.Margin of Safety…

Answered: Sheridan Company has sales of $2800000,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Alpha and Beta companies produce the same product with different technology. The selling price (T) is €10 and the production capacities range from 50,000 to 150,000 for each company. The cost elementsfor Alpha are: Fixed costs (CRS)= €12,000 and Average Variable Cost (MMK) = €7, and for Beta business: SK = €25.000 and MME =€5. a) To find the quantity and value of a break-even point for each (b) Calculate the operational leverage ratio (MLM) at 90,000 and 130,000 units for A and B.
If Actual sales are OMR 460000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Select one: a. MS=70000 and MS (%)=12.15 b. MS=100000 and MS (%)=15 c. MS=60000 and MS (%)=13.04 d. MS=62000 and MS (%)=13.42
If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Select one: a. MS=40000 and MS (%)=8.16 b. MS=60000 and MS (%)=15.15 c. MS=72000 and MS (%)=16.42 d. MS=40000 and MS (%)=8.89
The following price and cost data are given for firms A, B and C. Calculate the break-even point for each firm. (check the attached photo)
Compute (a) the margin of safety in dollars and (b) the margin of safety ratio with the given details below: Aactual sales for the product= 1,000,000 Break-even sales = 840,000.
If Actual sales are OMR 620000, Total Fixed costs OMR 115000, Selling price per unit OMR 60, and Variable cost per unit OMR 45, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Select one: a. MS=43000 and MS (%)=8.16 b. MS=69000 and MS (%)=13.15 c. MS=45000 and MS (%)=7.26 d. MS=72000 and MS (%)=16.42
5. Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $ 7 while the variable cost ratio is 20%. Assuming total fixed costs of $ 30,000, what is the margin of safety in ($) value?
Ivanhoe, Inc. developed the following information for its product: Sales price Variable cost Contribution margin Total fixed costs Per Unit (a) $102.00 71.40 $30.60 $1,288,260 Answer the following independent questions. Number of units to be sold How many units must be sold to break even?
If Actual sales are OMR 450000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Select one: a. MS=70000 and MS (%)=12.15 b. MS=100000 and MS (%)=15 c. None of the options d. MS=50000 and MS (%)=11.11
Bonita Industries has sales of $1200000, variable costs of $550000, and fixed costs of $300000. Bonita’s degree of operating leverage is 1.86. 1.18. 1.33. 2.17.
Assume a sales volume of 9120 units, unit selling price of $18, unit variable cost of $10, and total fixed costs of $30400. What is the margin of safety in sales dollars? O $68400 O $164160 O $34200 O $95760
Currently, the unit selling price of a product is $350, the unit variable cost is $290, and the total fixed costs are $840,000. A proposal is being evaluated to increase the unit selling price to $390. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units

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Sheridan Company has sales of $2800000, variable costs of $1300000, and fixed costs of $ 700000. Sheridan's margin of safety ratio is