From the following particulars:   Sales                            $ 120,000 Variable Cost               $  60,000 Fixed Cost                     $ 60,000                             Calculate: Contribution Profit Volume( P/V) Ratio Fixed cost for two periods Break Even Point in $ sales Margin of Safety Profit when sales are $500,000

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 17E
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  1. From the following particulars:

 

Sales                            $ 120,000

Variable Cost               $  60,000

Fixed Cost                     $ 60,000

                           

Calculate:

  1. Contribution
  2. Profit Volume( P/V) Ratio
  3. Fixed cost for two periods
  4. Break Even Point in $ sales
  5. Margin of Safety
  6. Profit when sales are $500,000
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