Given the following: compute the company's break-even point in dollars and the margin of safety in dollars and in percentage. Selling Price Per Unit 15 100 Variable Expense 9 20 Number of Units 20,000 5,000 A) Hawaiian Fantasy Percent Tahitian Joy Percent Amount Percent Sales $300,000 100% $500,000 100% $800,000 100% Variable Expenses $180,000 60.00% $100,000 20.00% $280,000 35.00% Contribution Margin $120,000 40.00% $400,000 80.00% $520,000 65.00% Fixed Expenses $475,800 59.48% Net Operating Income $44,200 5.53%
Given the following: compute the company's break-even point in dollars and the margin of safety in dollars and in percentage. Selling Price Per Unit 15 100 Variable Expense 9 20 Number of Units 20,000 5,000 A) Hawaiian Fantasy Percent Tahitian Joy Percent Amount Percent Sales $300,000 100% $500,000 100% $800,000 100% Variable Expenses $180,000 60.00% $100,000 20.00% $280,000 35.00% Contribution Margin $120,000 40.00% $400,000 80.00% $520,000 65.00% Fixed Expenses $475,800 59.48% Net Operating Income $44,200 5.53%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Given the following:
compute the company's break-even point in dollars and the margin of safety in dollars and in percentage.
| Selling Price Per Unit | 15 | 100 | ||||
| Variable Expense | 9 | 20 | ||||
| Number of Units | 20,000 | 5,000 | ||||
| A) | Hawaiian Fantasy | Percent | Tahitian Joy | Percent | Amount | Percent |
| Sales | $300,000 | 100% | $500,000 | 100% | $800,000 | 100% |
| Variable Expenses | $180,000 | 60.00% | $100,000 | 20.00% | $280,000 | 35.00% |
| Contribution Margin | $120,000 | 40.00% | $400,000 | 80.00% | $520,000 | 65.00% |
| Fixed Expenses | $475,800 | 59.48% | ||||
| Net Operating Income | $44,200 | 5.53% |
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