If Sprinkle Industries has a margin of safety ratio of 0.60 (or 60%), it could sustain a 60 percent decline in sales before it would be operating at a loss. True False
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- The margin of safety is: (Check all that apply.) Multiple select question. A. the difference between expected sales and break-even sales divided by expected sales. B. always expressed as a dollar amount (not in units or percentages). C. the amount sales can drop before the company incurs a loss. D. adequate if greater than 15% to 20%.(a) if Polymerco's production is running at 84% capacity, what is the maximum discount in percentage that you can provide? Maximum discount= in % In this case, will you have a negative impact on the profitability of the business? (yes or no) (b) if Polymerco's production is running at 100% capacity, how much percentage of discount can you provide without reducing the profitability? (in %)National Co. sells three products: AB, CD and EF. AB is the most profitable product while EF is the least profitable. Which of the following events will definitely decrease the firm’s overall BEP for the upcoming account period. An increase in AB’s raw materials An increase in anticipated sales of AB relative to the sales of CD and EF An increase in the overall market of CD An decrease in EF’s selling price
- If NUBD Co. is able to reduce quality costs to 2.5% of sales, what will happen to profits? A. decrease by P25,000 B. increase by P268,000 C. decrease by (P293,000) D. increase by P25,000If the improvements result in a 55% decrease in product repair costs and a 70% decrease in lost sales from customer returns, what is the impact on the overall COQ and the company’s operating income? What should iCover do? Explain.A company is making a loss of Rs. 40,000 and relevant information is as follows: Sales Rs. 1, 20,000; Variable Costs Rs. 60,000; Fixed costs Rs. 1, 00,000.Loss can be made good either by increasing the sales price or by increasing sales volume. What are Break even sales if (a) Present sales level is maintained and the selling price is increased. (b) If present selling price is maintained and the sales volume is increased. What would be sales if a profit of Rs. 1, 00,000 is required?
- Time left 1:55: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double the current production and sales quantity. However, due to increase in production capacity, the fixed cost is also expected to double. Assuming that the selling price per unit and the variable cost per unit remain unchanged, what would be the effect on profit? O a. Profit would decrease O b. None of the given answers O c. Profit would increase O d. Profit would remain unchanged O e. Cannot be determined using the information in the question. AL. 14:04 nere to search W a A d0) ENG 15-04-2021 hp prt sc delete home end an 6d %23 %24 & num 6. 8. 9 + backspace lock + E 8 A b. to home pg D F G H. J K. 48 5 0 enter L. pause C M ↑ shift 2Y S end alt ctrl insUsing your answer to Requirement 1, assume that Reshier Company is considering dropping any model with a negative product margin. What are the alternatives? Which alternative is more cost effective and by how much? (Assume that any traceable fixed costs can be avoided.) Do NOT round interim calculations and, if required, round your answer to the nearest dollar. will add $fill in the blank 8723bbfe4004028_3 to operating income 3. What if Reshier Company can only avoid 182 hours of engineering time and 4,800 hours of setup time that are attributable to Model 1? How does that affect the alternatives presented in Requirement 2? Which alternative is more cost effective and by how much? Do NOT round interim calculations and, if required, round your answer to the nearest dollar. will add $fill in the blank 8723bbfe4004028_5 to operating incomePeform a sensitivity analysis by answering the following questions: A. What is the break-even point in sales dollars for RBC? B. What is the margin of safety for RBC? C. What sales dollars would be required to achieve an operating profit of $170,000? $440,000?
- Irn/takeAssignment/takeAssignment Main.do?inprogress=true < Margin of Safety The Rachel Company has sales of $830,000, and the break-even point in sales dollars is $556,100. Determine the Rachel company's margin of safety as a percent of current sales. % 5 O PreviousMargin of Safety a. If Canace Company, with a break-even point at $401,800 of sales, has actual sales of $490,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $___________ 2. ____________% b. If the margin of safety for Canace Company was 45%, fixed costs were $1,648,350, and variable costs were 55% of sales, what was the amount of actual sales (dollars)?(Hint: Determine the break-even in sales dollars first.)$___________A corporation that is a single product firm is predicting that a price increase next year will cause unit sales to decrease. What effect would this price increase have on the following items for next year? A) B) C) D) Contribution Margin Ratio Increase Decrease Increase Decrease Multiple Choice Break-even Point Decrease Decrease No effect No effect