Margin of safetya. If Kirwan Company, with a break-even point at $425,600 of sales, has actual sales of $760,000, what is the margin of safety expressed (1) in dollars and (2) as apercentage of sales?1. $2.%b. If the margin of safety for Kirwan Company was 35%, fixed costs were $1,276,275, and variable costs were 65% of sales, what was the amount of actual sales(dollars)? (Hint: Determine the break-even in sales dollars first.)

Breakeven is the point at which an entity is in a position of no profit and no loss. At this point,…

Answered: a. If Kirwan Company, with a break-even…

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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Answer any four questions. 4x10=40 8. A Ltd. Maintains a MOS of 37.5% with an overall contribution to the sales ratio of 40%. Its fixed costs amount to Rs.5,00,000. Calculate the following: a) Break-Even Sales b) Total Sales c) Total variable cost d) Current profit e) New MOS if sales volume is increased by7.5%
5. Calculate the ratio of variable-costs-to-sales for a firm with RM1,500,000 break-even revenues and RM400,000 fixed costs.
Problem: The Company has Sales of P88,000, a Contribution Margin Ratio of 25%, and Margin of Safety of P18,000. Required: 1. How much is Sales at Break -even Point?
Ulpik Inc. has variable operation costs of $10 per unit, a selling price of $75,50 per unit and fixed operating costs of $250,000. a) Calculate the operating breakeven point in units. b) Calculate the firm's EBIT at a level of units sold of 24,000; 28,000; and 30,000 units respectively. c) With 28,000 units as a base, what are the percentage changes in units sold and EBIT, as sales move from the base to the other levels used in part b)? d) Use the percentages computed in part c) to determine the degree of operating leverage (DOL).
Zhao Company has fixed costs of $455,600. Its single product sells for $191 per unit, and variable costs are $124 per unit. If the company expects sales of 10,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. $ a. Margin of safety (in dollar) 611,200 b. Margin of safety (%)
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.)
BE6.5 (LO), AP For Rivera Company, variable costs are 70% of sales, and fixed costs are $210,000. Management's net income goal is $60,000. Compute the required sales needed to achieve management's target net income of $60,000. (Use the mathematical equation approach.) Compute the margin of safety and the margin of safety ratio. HAROH
25.
True or False?
Calculate the Margin of Safety, expressed as a percentage of Sales, given the following data: Sales $6,000,000.00 Variable Costs = 60% of Sales Fixed Costs = $1,800,000.00 Break-Even Sales = $4,500,000.00 Maximum Capacity of Sales = $10,000,000.00 = 15.0% 18.0% 33.3% 25.0%
a. If Canace Company, with a break-even point at $368,000 of sales, has actual sales of $460,000, 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. $fill in the blank 1 2. fill in the blank 2% b. If the margin of safety for Canace Company was 45%, fixed costs were $1,935,450, and variable costs were 55% of sales, what was the amount of actual sales (dollars)?(Hint: Determine the break-even in sales dollars first.)$fill in the blank 3
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.

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