Question 4 - Homework 6 - Connect

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eBook 1. $ 2. Show Me How Margin of Safety a. If Canace Company, with a break-even point at $489,900 of sales, has actual sales of $690,000, 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. % AssignmentSession Locator=&inprogress=false b. If the margin of safety for Canace Company was 30%, fixed costs were $1,178,100, 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 2 more Check My Work uses remaining. All work saved. Previous B Next >

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GB SalesRevenue                      16800    Purchases                            12800 Gross Profit                          4000 Selling Expenses                  2000 Admin Cost                           7200 Operating Loss                    5200   b)  Calculate mark-up (in percentage to 2 decimal places)  c)  Calculate the margin as a % to 1 decimal place  d)  What is the operating profit margin percentage if the admin cost is reduced by 60%? Show this to 1 decimal place e)  Define the following and provide respective examples with numeric calculations where possible: Trade discountBulk discountEarly settlement discount f)  If a company has a mark-up of 37% and sales revenue of £163,970, then what is the cost of sales in whole £’s?  g)  If a company has a net margin of 15%, gross margin of 35% and costs of sale of £25,000, then what is the sales revenue and overhead?

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Compute your total commision if you made 250,000 in sale if your company uses a variable or graduated commision as follows: 1st 100,000 3.5% 2nd 100,000 4.5% In excess of 200,000 5.5%

Question/Example: If a company sells a product for $24,000 to another company, and the company that sold the product, identifies that returns are normally 5% or 8% of the selling price. What does this mean exactly? Please explain, thanks.

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