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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

FINANCIAL ACCOUNTING
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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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.
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
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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