a. If Kirwan Company, with a break-even point at$2,080,000 of sales, has actual sales of $3,200,000,what is the margin of safety expressed (1) in dollars and(2) as a percentage of sales?1. $2.%b. If the margin of safety for Kirwan Company was25%, fixed costs were $1,500,000, and variable costswere 60% of sales, what was the amount of actual sales(dollars)? (Hint: Determine the break-even in salesdollars first.)$

Margin of the safety is the excess of sales over the break even point. Margin of safety is the…

Answered: $2,080,000 a. If Kirwan Company, with a…

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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Diamond, Inc.'s most recent contribution margin income statement shows the following: Sales @ $10 per unit Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) $160,000 (120,000) $ 40,000 (50,000) $ (10,000) If Diamond, Inc's advertising costs increased by $5,000, by how much would sales have to increase for the company to achieve an operating income of $4,000? a. $56,000 Ob. $42,000 c. $76,000 Od. $18,000
Margin of Safety a. If Del Rosario Company, with a break-even point at $1,160,000 of sales, has actual sales of $1,450,000, 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 Del Rosario Company was 20%, fixed costs were $2,500,000, and variable costs were 80% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)
Diamond, Inc.'s most recent contribution margin income statement shows the following: Sales @ $10 per unit Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) $160,000 (120,000) $ 40,000 (50,000) $ (10,000) If Diamond, Inc's advertising costs increased by $5,000, by how much would sales have to increase for the company to achieve an operating income of $4,000? a. $56,000 b. $42,000 c. $76,000 Od. $18,000
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
If fixed costs are $860,000 and variable costs are 61% of sales, what is the break-even point in sales dollars? Oa. $524,600 Ob. $3,065,128 Oc. $2,205,128 Od. $1,384,600
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%
Miller Company's most recent income statement follows: Sales (18,9e0 units) Less: Variable expenses Total $504, 000 126, 000 Per Unit $ 28 Contribution margin 378,000 $ 21 Less: Fixed expenses 53,00 $325, 000 Net income Consider each of the following cases independently. Required: 1. Prepare a new income statement if the sales volume increases by 30%, and the selling price decreases by $4.00. (Do not round Intermedlate calculations. Round "Per Unlt" answers to 2 decimel places.) Total Per Unit Sales
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.
If this year Eloise Ltd. had sales of $750,000, fixed costs of $150,000, and variable costs of $350,000, what is the margin of safety in dollars?(round numbers within the calculations to 2 decimal places and choose the closest whole number) $400,000 $466,981 $450,000 $425,650
Margin of Safety a. If Del Rosario Company, with a break-even point at $415,800 of sales, has actual sales of $540,000, 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 Del Rosario Company was 35%, fixed costs were $1,931,475, and variable costs were 65% of sales, what was the amount ofF actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)

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