Exercise 20.10 (Algo) Computing Contribution Margin Ratio and Margin of Safety (LO20-4, LO20-5) The following information relates to the only product sold by Mastrolia Manufacturing. Sales price per unit Variable cost per unit Fixed costs per year 45 27 295,000 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 % Break even sales dollars b. Margin of safety (in dollars)
Exercise 20.10 (Algo) Computing Contribution Margin Ratio and Margin of Safety (LO20-4, LO20-5) The following information relates to the only product sold by Mastrolia Manufacturing. Sales price per unit Variable cost per unit Fixed costs per year 45 27 295,000 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 % Break even sales dollars b. Margin of safety (in dollars)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23E
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![Exercise 20.10 (Algo) Computing Contribution Margin Ratio and Margin of Safety (LO20-4, LO20-5)
The following information relates to the only product sold by Mastrolia Manufacturing.
Sales price per unit
Variable cost per unit
Fixed costs per year
24
45
27
295,000
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
Break even sales dollars
b. Margin of safety (in dollars)
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Transcribed Image Text:Exercise 20.10 (Algo) Computing Contribution Margin Ratio and Margin of Safety (LO20-4, LO20-5)
The following information relates to the only product sold by Mastrolia Manufacturing.
Sales price per unit
Variable cost per unit
Fixed costs per year
24
45
27
295,000
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
Break even sales dollars
b. Margin of safety (in dollars)
Prev
3 of 3
Next >
23
NOV
11
étv li 1
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