Cubie Corporation has provided the following data concerning its only product:- Selling price: $93 per unit- Current sales: 10,700 units- Break-even sales: 8,346 units**Question:** What is the margin of safety in dollars?**Multiple Choice:**- $776,178- $218,922- $605,419 **Question:**What is the margin of safety in dollars?**Options:**- $776,178- $218,922- $605,419- $995,100**Explanation:**The image is a multiple-choice question asking for the calculation of the margin of safety in dollars, a key concept in financial analysis and budgeting. The margin of safety is used to determine how much sales can drop before a business reaches its breakeven point. Understanding this concept is crucial for risk management and strategic planning. There are four monetary options provided, and the correct choice depends on prior calculations or given data.

The question is based on the concept of Financial Management.

Answered: Cubie Corporation has provided the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

bapu
please answer do not image format
Part 2. Bhiner 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 $25,000 Variable expenses 10.000 ontribution margin 15,000 +Fixed expenses 8.000 Net operating income $ 7.000 Required: (Answer each question independently and always refer to the original data unless instructed otherwise.) (Show all work/calculations. No credit will be given without
Prepare an Excel worksheet that illustrates cost-volume-profit (CVP) analysis, also referred to as breakeven analysis. Assume that a particular product sold at Astro Ltd a US toy company has a sales price per unit of $4.00; variable cost per unit of $2.20; and total fixed cost of $90,000. 1) Calculate the contribution margin per unit, the break-even point in units of sales, and the break-even point in dollars of sales. In the input area, show sales price per unit, variable cost per unit, and total fixed cost. In the output area, show contribution margin per unit, breakeven point in units, and breakeven point in dollars computed using appropriate formulas. 2) Assume that the planning team at Astro Ltd estimates that for the next planning period selling price for this product will increase 40%; variable expenses will decrease 25%; and that total fixed cost will decrease 25%. Compute the new values for sales price per unit, variable cost per…
Qd 32.
What is the Break-Even sales (in units) given the following data: Total Fixed Costs = $250,000.00 Unit Selling Price = $105.00 Unit Variable Cost = $65 10,000 6.250 3,846 2,381
For Sunland Company, actual sales are $1,770,000, and break-even sales are $1,451,400. (A) Compute the margin of safety in dollars. Margin of safety $Type your answer here (B) Compute the margin of safety ratio. Margin of safety ratio Type your answer here %
Francorp has a break-even point of $175,000. Ifactual sales are $225,000 then what is the margin of safety in terms of units? Note that Francorp has a sales price of $400 per unit. 170 units O 200 units O 150 units O 125 units
HD.
Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage of sales.
A company provided the following data: Selling price per unit $80 Variable cost per unit $55 Total fixed costs $490,000 What is the break-even point in units?
The following information relates to the only product sold by Mastrolia Manufacturing. Sales price per unit Variable cost per unit Fixed costs per year 2$ 45 27 281,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars). a. Contribution margin ratio 40 % Break even sales dollars b. Margin of safety (in dollars)

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Cubie Corporation has provided the following data concerning its only product: 24 93 per unit Selling price Current sales 10, 700 units 8,346 units Break-even sales What is the margin of safety in dollars?