Fountain Corporation has a selling price of $10 per unit and variable costs of $5.30 per unit. When 20,000 units are sold, profits equal $28,200. What is the margin of safety? Multiple Choice $60,000 $140,000 $200,000 О $100,000 留

Q: Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total…

A: Solution:- Calculation of Break even point value($) as  follows under:-

Q: Friar Corporation sells two products. Product A sells for $100 per unit and has unit variable costs…

A: The contribution margin is the difference between the sales and the variable expense. It in other…

Q: Sheridan Company has fixed costs of $2300000 and variable costs are 20% of sales. What are the…

A: Total Sales: The total sales are the fixed cost, variable cost, and profit income. here variable…

Q: Sunland Company manufactures and sells solar chargers for $50 each. Variable costs are $40 per unit,…

A: Break Even Sales is point at which no profit no loss is occurred. Formula: BEP (in amount) = Fixed…

Q: Saved 8 Sugar Corp has a seling price of $26, variable costs of $16 per unit, and fixed costs of…

A: Unit contribution margin = Selling price per unit - Variable cost per unit = $26 - $16 = $10 per…

Q: Alternative A Alternative B OMR 50,000 OMR 60,000 ts 30,000 30,000 10,000 16,000

A: Incremental revenues, costs or profits are the  changes in revenue, cost or profit from one period…

Q: Heriot and Watt Plc want to increase their profits from the sale of their product by 20%. You are…

A: The number of units to achieve the target profit can be calculated by computing the desired profits…

Q: A manufacturer of plastic traffic cones sells the cones at a wholesale cost of £8 pounds per cone.…

A: Annual profit = Contribution margin - Annual overhead costs where, Contribution margin = (Sales per…

Q: ngineering: A В 100,000 150,000

A: Let number of units produced per year be Q. Variable Cost Per Hour as,

Q: Meriot, Inc. has fixed costs of $200,000, sales price of $50, and variable cost of $30 per unit. How…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Company XYZ produces and sells wireless earphones . The selling price per unit is $5 and the total…

A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…

Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…

A: Formula: Profit = Revenues - Expenses.

Q: 50) Selling price is $80/unit, VC are $68/unit, Fixed costs are $600,000. You are currently selling…

A: Margin of safety in units = current sales units -  break even point    Break even point = Total…

Q: Waple Corp. has a selling price of $30, varlable costs of $20 per unit, and fixed costs of $20,000.…

A: Solution: Unit contribution margin = Selling price per unit - Variable cost per unit

Q: 48) Selling price is $50/unit, VC are $36/unit, Fixed costs are $420,000, how many units do you need…

A: Break-even: It can be defined as that level of production at which the firm’s total costs fall…

Q: Bonita Industries sells MP3 players for $80 each. Variable costs are $50 per unit, and fixed costs…

A:

Q: Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution…

A: The margin of safety is the excess of sales revenue over the current sales revenue for the given…

Q: 51) Selling price is $90/unit, VC are $63/unit, fixed costs are $540,000. You are currently selling…

A: The margin of safety is calculated as excess of current sales over break even sales.

Q: Skyline Corp. has a selling price of $30 per unit, variable costs of $22 per unit, and fixed costs…

A: Solution: Breakeven sales units = Fixed costs / CM per unit = $46,400 / ($30 - $22) = 5800 units

Q: Variable costs for Concord Corporation are 60% of sales. Its selling price is $240 per unit. If…

A: Break-even refers to covering all the costs without making a profit. At break-even point company…

Q: 4. You are given the following information: Rs. Selling price per unit Variable cost Total fixed…

A: Formula: Contribution margin = selling price - variable cost Break even point in units = Fixed cost…

Q: Assume the following (1) total sales = $200,000 (2) breakeven sales = $120,000, and (3) total fixed…

A: The break-even sales are the sales where the business earns no profit or loss during the period. The…

Q: Campbell Company has fixed costs of $200,000, sales price of $50, and variable cost of $30 per unit.…

A: To earn a target profit of $50,000, Campbell must earn a contribution margin of $250,000…

Q: What is the incremental profit?

A: Incremental profit is the additional profit gained due to a managerial decision taken. In this case,…

Q: Question 2: Nizwa Company has the following information given in OMR. OMR Fixed Cost 14750 Break…

A: Solution a: Breakeven sales = 20,000 Contribution margin at breakeven sales = fixed costs = 14,750…

Q: Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total…

A: Ans. Breakeven point is calculated by using the following formula :- Breakeven point = Fixed cost ÷…

Q: Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and…

A: Margin of safety is the difference between the actual sales for the current period and the break…

Q: Saved Metet, Inc. has fed costs of $257,000, sales price of $54, and variable cost of $32 per unit…

A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…

Q: = breakeven point in

A: Definition: Break even point: A point at which fixed and variable expenses equals revenue. It is…

Q: 43) Determine the break-even point of sales if: Sales is $100,000, Variable cost is $ 50,000 and…

A: From the given information, Contribution margin percentage = Sales-Variable…

Q: Frontier Corp. sells units for $45, has unit variable costs of $19, and fixed costs of $177,000.…

A: Contribution margin = Total sales - Total variable cost Profit = Contribution margin - Fixed costs

Q: Nictus Limited produces electrical blankets. The blankets are sold for R 750 per unit and variable…

A: Step 1: Total net profit can be calculated by subtracting the total fixed costs from the…

Q: Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that…

A: Variable costs on increased sales = Increase in sales x 40% = $10,000 x 40% = $4,000

Q: Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $ 7 while…

A: Selling units = 20,000 Net sales = $140,000 (20,000*7) Variable cost ratio = 20% Fixed cost = 30,000

Q: Mercantile Corporation has sales of $2,000,000, variable costs of $800,000, and fixed costs of…

A: For computing Margin of safety, we need profits and contribution margin ratioMargin of safety is the…

Q: onado Industries's variable costs are 30% of sales. The company is contemplating an advertising…

A: 1.     CVP analysis is used to identify the changes in costs and volume that affect a company's…