Elmwood Manufacturing reported sales of $2,000,000 last year (100,000 units at $20 each),when the break-even point was 80,000 units. Elmwood's margin of safety ratio is20%O 120%.80%O25%

MARGIN OF SAFETYSales Above the Break-Even Point is called Margin of Safety Sales.Margin of Safety…

Answered: Elmwood Manufacturing reported sales of…

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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Moyas Corporation sells a single product for $20 per unit. Last year, the company's sales revenuewas $300,000 and its net operating income was $24,000. If fixed expenses totaled $96,000 for theyear, the break-even point in unit sales was:A) 12,000 units B) 14,100 units C) 9,900 units D) 15,000 units
Company XYZ last year sold 40,000 units of a product whose contribution margin is $20.00. This year the company expects to sell only 25,000, despite reducing the unit price by $5.00 and keeping all other costs constant. The expected decrease in operating profit is: a ) $275,000.00 b) $425,000.00 c) $325,000.00 d) $375,000.00
A total of 50,000 units were sold last year. The contribution margin per unit was $4, and fixed expenses totaled $50,000 for the year. This year fixed expenses are expected to increase BY $20,000, but the contribution margin per unit will remain unchanged. How many units must be sold this year to earn the same profit as was earned last year? O 37,500 O 50,000 O 17,500 O 58,500 O 55,000
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Last year, Garrison Manufacturing sold 500 000 units at $4 each. Sales volume is expected to increase by 15% in the upcoming year, and sales price is expected to decrease by 5% in the upcoming year. The expected sales revenue for the upcoming year is: A. $2 255 000 B. $2 185 000 C. $2 645 000 D. $2 000 000
Assume that Corn Co. sold 7,300 units of Product A and 2,700 units of Product B during the past year. The unit contribution margins for Products A and B are $34 and $57, respectively. Corn has fixed costs of $304,000. The break-even point in sales units is Do not round intermediate calculations and round your final answer to nearest dollar. a. 6,048 units b. 11,340 units c. 7,560 units Od. 9,072 units
ABC Corporation total breakeven point is 100,000 units. Its selling price is 100 and contribution margin is 40. During the year, the operating profit is 800,000. What is the total actual units sold during the year?
Kailyn Company has a 25% margin of safety. Its before-tax return on sales is 6%, and its tax rate is 40%. If fixed costs amount to $320,000, how much sales did Kailyn make for the year?
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.
Swifty Corporation sells 2200 units of Product A annually, and 7800 units of Product B annually. The sales mix for Product A is Cannot determine from information given. 28%. 78%. 22%.

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Elmwood Manufacturing reported sales of $2,000,000 last year (100,000 units at $20 each), when the break-even point was 80,000 units. Elmwood's margin of safety ratio is 20% O 120%. 0 80% 25%