In 20A, Smith presented total variable costs at $687.50; total fixed costs at $6,750,000; sales price per unit $1,250; sold 20,000 units; tax rate at 40%. What is the margin of safety in units? 8,000 units 12,000 units 16,000 units 4,000 units

In 20A, Smith presented total variable costs at $687.50; total fixed costs at $6,750,000; sales price per unit $1,250; sold 20,000 units; tax rate at 40%. What is the margin of safety in units? 8,000 units 12,000 units 16,000 units 4,000 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A company has the following data about its costs: Variable unit cost: Raw material $2.3 Labor $1.2…

A: The contribution margin is considered as an excess of revenue over variable cost.

Q: If fixed costs are $255,000, the unit selling price is $33, and the unit variable costs are $15, the…

A: Breakeven sales revenue is that level of sales revenue at which the business is only recovering its…

Q: The price is $10 per unit. Total sales revenue is $1,000, total variable costs are $600, and total…

A: Solution,, Contribution margin ratio = (Sales - variable cost) / Sales revenue

Q: Coor. Goed Kelly's Karts, LLC reported the following data: Sales quantity 400 units: Sales $100 per…

A: Break-even analysis is a financial and managerial accounting tool that helps businesses determine…

Q: n indirect cost

A: Option a, b, c and d are wrong because all of these statements are true.

Q: Reynold's Company has a product with fixed costs of $279,000, a unit selling price of $27, and unit…

A: Contribution margin per unit = Unit selling price - Unit variable costs Break-even sales (units) =…

Q: Variable cost as a percentage of sales = 60% Unit variable cost = $30 Fixed costs = $200,000 What…

A: Break even point is an important tool used in the cost -volume -profit (CVP) analysis . Break even…

Q: If fixed costs are $287,000, the unit selling price is $31, and the unit variable costs are $21, the…

A: At break-even sales units, there is no profit or loss to the entity. It is a level of sales where…

Q: The unit selling price is $75 and the variable cost per unit is $33 and the total fixed costs are…

A: Margin of safety = Actual sales - Break-even point Break-even point = Total fixed costs/PV ratio…

Q: If fixed costs are $295,000, the unit selling price is $72, and the unit variable costs are $54, the…

A: Break-even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No…

Q: Atlanta Corp. has supplied you with the following information: Variable cost per unit $450 Selling…

A: Break-even point in units = Fixed cost/Contribution margin per unit At Break-evenpoint Total…

Q: Sales revenue (30,000 units) Variable costs Contribution margin Fixed costs Operating income At the…

A: Break even sales is the sales where net income is zero. Or we can say the level where total variable…

Q: A company has provided the following data: Sales Sales price Variable cost Fixed cost If the dollar…

A: There are two type of costs incurred in the business. One is fixed costs and other is variable…

Q: If fixed costs are $260,000, the unit selling price is $75, and the unit variable costs are $46, the…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: Fountain Corporation has a selling price of $10 per unit and variable costs of $5.30 per unit. When…

A: Margin of safety is the amount which is determined by deducting the breakeven sales from the sales…

Q: If fixed costs are $285,000, the unit selling price is $34, and the unit variable costs are $16, the…

A: Break even sales in units = Fixed cost/Contribution margin per unit

Q: At a sales (and production ) volume of 50 units , the total cost per unit is $410 , and the variable…

A: The objective of the question is to determine the total cost per unit when the sales and production…

Q: You’ve Got This (YGT) desires to reach a target profit of $850,000 in the upcoming year. Their cost…

A: TARGET SALES Target Sales is the Expected Sales Required to Reach the Target Profit of the…

Q: Calculate the Margin of Safety, expressed as a percentage of Sales, given the following data: Sales…

A: Formula, Margin of Safety (Dollars) = Actual Sales - Break Even Sales Margin of Safety…

Q: A company has provided the following data: Sales 2,000 units Sales price $50/unit Variable cost…

A: Variable costs are costs which changes along with change in sales activity level. Fixed costs do not…

Q: If fixed costs are $260,000, the unit selling price is $74, and the unit variable costs are $55, the…

A: Break even units = Fixed cost/ Contribution per unit Contribution per unit= Sales price - Variable…

Q: Summer Corporation is a shipping container refurbishment company that measures its output by the…

A: Actual production = 38 units Planned production = 40 units Standard rate per unit = $700 Activity…

Q: sales in units (rounded to a whole number) required to realize a target profit of $200,000?

A: We know that Fixed cost remains constant irrespective of the amount of activity and variable cost…

Q: Using the following information, what would variable cost per unit be at 8,000 units? 2,000 3,000…

A: Total variable cost is the cost which varies with the change in the production volume. If the…

Q: A company provided the following data: Selling price per unit $80 Variable cost per unit $45 Total…

A: The number of units required to earn a profit can be calculated as sum total fixed costs and profit…

Q: If fixed costs are $266,000, the unit selling price is $29, and the unit variable costs are $20, the…

A: Break Even Point is that point of sales, where all the expenses (Fixed and variable) are recovered…

Q: Please I want answer

A: Step 1:Contribution per unit= Sales price per unit - variable cost per unit Contribution margin…

Q: Price per unit: $10 Variable cost per unit: $7 . Fixed costs: $1,500 Given these data, compute the…

A: Introduction: Break even units: Division of Unit contribution margin with Fixed cost derives the…

Q: If fixed costs are $299,000, the unit selling price is $35, and the unit variable costs are $16, the…

A: The right answer is a . 13,337 units

Q: The contribution margin ratio is 30%. If total fıxed costs are $24,000, then what is the total cost…

A: Variable cost per unit = Selling price x (1 - contribution margin ratio) = $2 x (1-0.30) = $1.4 per…

Q: 3. A company has return on sales of 20%, income of $50,000, selling price of $10, and a contribution…

A: Solution.. Income = $50,000 Return on sales = 20% Contribution margin ratio = 40% Selling price…

Q: A Sale price per unit $4 1,900 Variable costs per unit 1,425 3,750 Total fixed costs 209,000 675,000…

A: Contribution margin is calculated as difference between sales price and variable expenses. Further,…

Q: Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: Coors Company expects sales of $390,000 (5,200 units at $75 per unit). The company's total fixed…

A: Break even point is a point where the profits are nil. It is the point where the costs are fully…

Q: If fixed costs are $272,000, the unit selling price is $122, and the unit variable costs are $71,…

A: Break-even sales (units) = Fixed costs/Contribution margin per unit

Q: From the following particulars, calculate Margin of safety: Fixed cost OMR.

A: Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that…

Q: Assume the following (1) selling price per unit = $30, (2) variable expense per unit = $18, and (3)…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…

Q: What is the Break-Even sales (in units) given the following data:

A: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit)…

Q: • Price per unit: $10 . Variable cost per unit: $7 . Fixed costs: $1,500 Given these data, compute…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

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: Sales are 4000 units, fixed cost is 10000, selling price /unit= 30 OMR, variable cost /unit= 25 OMR…

A: Sales = 4000 units Fixed cost = 10000 Selling price = 30 OMR Variable cost = 25 OMR Contribution per…

Q: company provided the following data: Selling price per unit $80 Variable cost per unit $55 Total…

A: Break even units = Fixed cost/contribution per unit

Q: If fixed costs are $288,000, the unit selling price is $35, and the unit variable costs are $15,…

A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…

Q: Assume the following (1) selling price per unit = $30. (2) variable expense per unit = $18, and (3)…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…

Q: Contribution margin per unit CM ratio Variable expense ratio Compute the break-even. Break-even in…

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

Q: Assume a sales volume of 9120 units, unit selling price of $18, unit variable cost of $10, and total…

A: The question is based on the concept of Cost Accounting. The sale over and above the break even…

Q: fixed costs are $283,000, the unit selling price is $72, and the unit variable costs are $51, what…

A: Break Even Point is a point where there is no profit or loss. Break Even Sales = Fixed Cost /…

Question

100%

In 20A, Smith presented total variable costs at $687.50; total fixed costs at $6,750,000; sales price per unit $1,250; sold 20,000 units; tax rate at 40%. What is the margin of safety in units?

8,000 units

12,000 units

16,000 units

4,000 units

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If fixed costs are $332,000, the unit selling price is $74, and the unit variable costs are $53, the old and new break-even sales (units), respectively, if the unit selling price increases by $8 are a.15,810 units and 4,486 units b.6,264 units and 10,948 units c.15,810 units and 11,448 units d.4,486 units and 15,810 units
Rose Corporation has a contribution margin of $46,800, variable costs of $15.66 per unit, and fixed costs of $36,000. If Rose sold 9,000 units, what was the unit sales price? Multiple Choice $20.88 $5.20 $18.26 $20.86
In 20A, Domingo presented total variable costs at P687.50; total fixed costs at P6,750,000; sales price per unit P1,250; sold 20,000 units; tax rate at 40%. What is the margin of safety in units? * O 4,000 units O 12,000 units O 8,000 units O 16,000 units
If the selling price per unit is $80, the variable expense per unit is $40, and total fixed expenses are $250,000, what are the breakeven sales in dollars? A. $3,125 B. $125,000 c. $500,000 D. $166,667
Fountain Corp. has a selling price of $14 per unit and variable costs of $9.80 per unit. When 18,000 units are sold, profits equaled $24,900. What is the margin of safety?
If fixed costs are $252,000, the unit selling price is $129, and the unit variable costs are $80, the break-even sales in units (rounded to the nearest whole unit) is a. 1,206 units b. 5,143 units c. 3,150 units d. 1,953 units
need answer of this question
Kk.1. Subject :- Accounting Assume the following (1) selling price per unit = $30, (2) variable expense per unit = $18, and (3) total fixed expenses = $55,200. Given these three assumptions, the unit sales needed to achieve a target profit of $12,000 is: Multiple Choice 5,600 units. 17,600 units. 84,800 units. 67,200 units.
Calculate the Margin of Safety, expressed as a percentage of Sales, given the following data: Sales $6,000,000.00 Variable Costs = 60% of Sales Fixed Costs = $1,800,000.00 Break-Even Sales = $4,500,000.00 Maximum Capacity of Sales = $10,000,000.00 = 15.0% 18.0% 33.3% 25.0%
Munabhai
If fixed costs are $265,000, the unit selling price is $125, and the unit variable costs are $76, the break-even sales (units) is a.2,120 units b.1,318 units c.3,487 units d.5,408 units
20. If fixed costs are $262,000, the unit selling price is $32, and the unit variable costs are $21, the break-even sales (units) if fixed costs are reduced by $45,300 is a.15,760 units b.19,700 units c.29,550 units d.23,640 units