a. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000, what is the margin of safety evpressed (1) in doilars and (2) as apercentage of sales? Round the percentage to the nearest whole number.1. $2.

Introduction: Margin of safety: Deduction of Break even sales from the current sales value Derives…

a. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000, what is the margin of safety expressed (1) in dolars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $

a. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000, what is the margin of safety expressed (1) in dolars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Margin of Safety a. If Canace Company, with a break-even point at $262,700 of sales, has actual…

A: Margin of safety in dollars = Actual Sales - Break even point sales Margin of safety as a percentage…

Q: Margin of Safety a. If Canace Company, with a break-even point at $529,300 of sales, has actual…

A: "Since you have asked multiple question we will solve the first question for you. If you want any…

Q: Margin of Safety a. If Canace Company, with a break-even point at $223,200 of sales, has actual…

A: The margin of safety sales are excess of actual sales over break even sales.

Q: Margin of Safety The Rachel Company has sales of $290,000, and the break-even point in sales dollars…

A: Formula used: Margin of safety = [ Current sales - Break even sales ) / Current sales ] x 100 In…

Q: 17. During the current year, the net sales of Regine Company, were 10% below last vear's level. You…

A: There are three types of costs that are fixed, variable, and semi-variable.

Q: Margin of Safety a. If Canace Company, with a break-even point at $464,000 of sales, has actual…

A: Margin of safety refers computation of how much output or sales level can fall before a business…

Q: Margin of Safety a. If Canace Company, with a break-even point at $671,500 of sales, has actual…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: If a business had sales of $4,316,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Total sales = Margin of Safety + Break even point Break even point : At break even point, there is…

Q: a. If Canace Company, with a break-even point at $661,200 of sales, has actual sales of $870,000,…

A: The question is based on the concept of Cost Accounting. Break even point is the point at which…

Q: Dean Company has sales of $229,000, and the break-even point in sales dollars is $119,080. Determine…

A: Margin of safety means the difference between the budget sales and breakeven sales. It means the…

Q: If a firms expected sales are $256,000 and its break-even sales are $193,000, what will the margin…

A: Margin of safety: The margin of safety indicates how much a company’s sales level can drop before it…

Q: a. If Canace Company, with a break-even point at $568,800 of sales, has actual sales of $790,000,…

A: 1) a) Margin of safety (in dollars) = Actual sales - Break-even sales = 790,000 - 568,800 =…

Q: If Kirwan Company, with a break-even point at $527,000 of sales, has actual sales of $850,000, what…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The margin…

Q: a. If Del Rosario Company, with a break-even point at $455.000 of sales, has actual sales of…

A: Margin of safety % = Margin of safety / sales where, Margin of safety = Total sales - break even…

Q: coronado industries had actual sales of $800,000 when break-even sales were 680,000. what is the…

A: Sale is the amount of actual sales made by the entity during a period whereas break-even sale is the…

Q: A company's margin of safety is $110,000. If the company's sales drop by $70,000, it will still have…

A: Operating Income is the difference between total revenue and total operating expense of the…

Q: Margin of Safety a. If Canace Company, with a break-even point at $325,000 of sales, has actual…

A: The margin of safety is the sales level over and above break-even sales. Margin of safety determines…

Q: If Canace Company, with a break-even point at $522,600 of sales, has actual sales of $670,000, what…

A: Solution:-a Calculation of margin of safety in dollars and as a percentage of sales as follows…

Q: High-Low Method for a Service Company Boston Railroad decided to use the high-low method and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Jonick Company has sales of $460,000, and the break-even point in sales dollars is $372,600.…

A: Sales $4,60,000 Break-even point in sales dollars $3,72,600 Margin of Safety $ (Sales in dollar…

Q: If a business had sales of $3,510,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Formulas: Margin of Safety = (Sales - Break even Sales) / Sales

Q: question number 4 and number 5 was not answered? 4. How much must your organization have in…

A: Sales dollars to earn desired profit is the estimate of sales amount to generate the required net…

Q: Margin of Safety The Whitehead Company has sales of $200,000, and the break-even point in sales…

A: The margin of safety (MoS) is the difference between the sales level in the company and the…

Q: If Canace Company, with a break-even point at $308,000 of sales, has actual sales of $440,000, what…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: Margin of safety a. If Kirwan Company, with a break-even point at $338,100 of sales, has actual…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The margin…

Q: Dragon, Inc. has actual sales of $310,000 and a margin of safety of $136,400. What is Dragon's…

A: Break-even point in sales = Actual sales - margin of safety

Q: Margin of safety a. If Kirwan Company, with a break-even point at $435,200 of sales, has actual…

A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…

Q: a. If Del Rosario Company, with a break-even point at $552,000 of sales, has actual sales of…

A: Margin of safety = Total actual sales - break even sales

Q: For Pharoah Company, actual sales are $1,100,000, and break-even sales are $792,000. (a) Compute the…

A: Break even sale is the sale whereby the entity is covering its costs but not earning any profits…

Q: Music Corporation recorded sales of $2,235,245 for the most recent year. The company's breakeven…

A: Formula: sales (in dollars) would be needed to increase the company's MOS% : = ( Actual sales -…

Q: If Kirwan Company, with a break-even point at $412,500 of sales, has actual sales of $750,000, what…

A: 1) Margin of Safety in dollars is $337,5002) Margin of Safety as a percentage of Sales is 45%b)…

Q: If a business had sales of $3,814,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Margin of safety % = Margin of safety in dollars/Actual sales Margin of safety in dollars = Actual…

Q: Margin of safety The Rachel Company has sales of $530,000, and the break-even point in sales dollars…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: UOHPMB251 Corp. has a 20% margin of safety percentage based on its actual sales. The break-even…

A: BEP SALES : = $748,000 VARIABLE EXPENSES : = 40% CM RATIO : = 60%

Q: Margin of Safety The Rachel Company has sales of $830,000, and the break-even point in sales dollars…

A: Answer Total sales = Break Even sales + margin of safety sales

Q: a. If Canace Company, with a break-even point at $281,400 of sales, has actual sales of $420,000,…

A: a. Margin of safety = Sales - break-even point = $420,000 - $281,400 = $138,600 Margin of safety as…

Q: Margin of Safety a. If Canace Company, with a break-even point at $492,000 of sales, has actual…

A: Margin of safety in dollars = Actual sales - Break even sales Margin of safety in % = Margin of…

Q: Margin of Safety a. If Del Rosario Company, with a break-even point at $482,400 of sales, has actual…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: a. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000,…

A: Margin of safety: Difference between total sales and break even sales is called margin of safety.…

Q: Answer any four questions. 4x10=40 8. A Ltd. Maintains a MOS of 37.5% with an overall contribution…

A: Step 1: The answers to four questions (answering first four) asked are given as follows:- The fixed…

Question

a. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000, what is the margin of safety evpressed (1) in doilars and (2) as a
percentage of sales? Round the percentage to the nearest whole number.
1. $
2.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If a business had sales of $4,369,000 and a margin of safety of 20%, the break-even point was a.$3,495,200 b.$873,800 c.$7,864,200 d.$5,242,800
None
Please help with 7 through 10. Thank you!:)
A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of safety in dollars is a. $180,000. c. $480,000. e. $300,000. b. $120,000. d. $60,000.
a. If Canace Company, with a break-even point at $426,400 of sales, has actual sales of $520,000, 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. 1. $ 2. % p. If the margin of safety for Canace Company was 25%, fixed costs were $1,494,375, and variable costs were 75% of sales, what was the amount of actual sales dollars)? Hint: Determine the break-even in sales dollars first.)
James Company has a margin of safety percentage of 20%. The break-even point is £200,000 and the variable expenses are 45% of sales. Given this information, the operating profit is: Select one: O A. £27,500 O B. £18,000 O C. £22,500 O D. £22,000
Margin of Safety The Rachel Company has sales of $550,000, and the break-even point in sales dollars is $368,500. Determine the company's margin of safety as a percent of current sales.
I need the answers of 1-6.
From 27th Edition, Carl Warren, James M. Reeve, Jonathan Duchac Chapter 18-21, Margin of Safety If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, 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. 1. $ 2. % b. If the margin of safety for Canace Company was 20%, fixed costs were $1,875,000, and variable costs were 80% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)