Pharoah Industries reported actual sales of $2,130,000 and fixed costs of $564,237. The contribution margin ratio is 30%.Compute the margin of safety in dollars and the margin of safety ratio. (Round margin of safety ratio to 1 decimal place, e.g. 52.7.)Margin of safety in dollarsMargin of safety ratio

MARGIN OF SAFETYThe margin of safety (MOS) is the difference between actual sales and break-even…

Answered: Pharoah Industries reported actual…

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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Skywalker Corporation reported the following on their contribution format income statement: Sales (12,000 units) $175,000 Less: Variable expenses 100,000 Contribution margin 75,000 Less: Fixed expenses 62,500 Net operating income $ 12,500 What is the contribution margin ratio?
Bryce Co. sales are $848,000, variable costs are $466,300, and operating income is $229,000. What is the contribution margin ratio? Oa. 60.2% Оb. 55.0% Ос. 40.7% Od. 45.0%
Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 20,000 13,000 7,000 3,780 $ 3,220 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage %
= Adam's Repair Shop has a monthly target operating income of $12,500. Variable expenses are 75% of sales, and monthly fixed expenses are $9,500. Hint: The contribution margin ratio= 100% - Variable expenses percentage of sales. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. = Margin of safety in dollars (Round intermediate calculations up to the nearest whole dollar and your final answer to the nearest whole dollar.) The margin of safety is Requirement 2. Express Adam's margin of safety as a percentage of target sales. Begin by identifying the formula to compute the margin of safety as a percentage of target sales. (Round the percentage to the nearest whole percent.) The margin of safety percentage is % of target sales. Requirement 3. What is Adam's operating leverage factor at the target level of operating income? Begin by identifying the…
! Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income Margin of safety in dollars Margin of safety percentage 11. What is the margin of safety in dollars? What is the margin of safety percentage? $ 20 $ 20,000 12,000 % 8,000 6,000 $ 2,000
Vikram
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 (%)
Fountain Corp. has a selling price of $14 per unit and variable costs of $9.80 per unit. When 18,000 units are sold, profits equaled $24,900. What is the margin of safety?
Compute (a) the margin of safety in dollars and (b) the margin of safety ratio with the given details below: Aactual sales for the product= 1,000,000 Break-even sales = 840,000.
Company XYZ made total contribution margin of $200,000 and a net income of $150,000. The company also made a total gross margin of $210,000. Assume that the variable selling and administrative expenses were $40,000, how much is the fixed manufacturing cost ($)?
Harry Company sells 15,000 units at $44 per unit. Variable costs are $30.36 per unit, and fixed costs are $63,400. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
The Tom Company reports the following data. Sales $181,203 Variable costs 94,503 Fixed costs 35,700 Determine Tom Company's operating leverage. Round your answer to one decimal place.

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