4. Calculate the margin of safety in sales revenue for the coming year. $ 5. What if the total selling and administrative expenses are reduced to $19,550? Recalculate the following: a. Break-even point in units b. Break-even point in sales revenue c. Margin of safety in units for the coming year d. Margin of safety in sales revenue for the coming year units units
4. Calculate the margin of safety in sales revenue for the coming year. $ 5. What if the total selling and administrative expenses are reduced to $19,550? Recalculate the following: a. Break-even point in units b. Break-even point in sales revenue c. Margin of safety in units for the coming year d. Margin of safety in sales revenue for the coming year units units
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6CE
Related questions
Question
![Break-Even Units and Sales Revenue: Margin of Safety
Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,890,000 pages at a price of $0.06 each in the coming year. Product costs
include:
Direct materials
Direct labor
Variable overhead
Total fixed overhead
$0.009
$0.003
$0.001
$84,320
There is no variable selling expense; fixed selling and administrative expenses total $36,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54a4597e-3d99-4c20-8113-3401a2a6115b%2Fc2922ced-5ba2-4d74-a040-efb3ee74e70b%2F5x4jok_processed.png&w=3840&q=75)
Transcribed Image Text:Break-Even Units and Sales Revenue: Margin of Safety
Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,890,000 pages at a price of $0.06 each in the coming year. Product costs
include:
Direct materials
Direct labor
Variable overhead
Total fixed overhead
$0.009
$0.003
$0.001
$84,320
There is no variable selling expense; fixed selling and administrative expenses total $36,000.
![4. Calculate the margin of safety in sales revenue for the coming year.
$
5. What if the total selling and administrative expenses are reduced to $19,550? Recalculate the following:
a. Break-even point in units
b. Break-even point in sales revenue
c. Margin of safety in units for the coming year
d. Margin of safety in sales revenue for the coming year
units
units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54a4597e-3d99-4c20-8113-3401a2a6115b%2Fc2922ced-5ba2-4d74-a040-efb3ee74e70b%2Fwdpgx17_processed.png&w=3840&q=75)
Transcribed Image Text:4. Calculate the margin of safety in sales revenue for the coming year.
$
5. What if the total selling and administrative expenses are reduced to $19,550? Recalculate the following:
a. Break-even point in units
b. Break-even point in sales revenue
c. Margin of safety in units for the coming year
d. Margin of safety in sales revenue for the coming year
units
units
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