Jerry and Ben Corporation manufactures picnic tables and other custom outdoor furniture. The corporation has fixed costs of $500,000 and a contribution margin ratio of 40%. Currently, sales are $2,000,000. What is Jerry and Ben's margin of safety? Multiple Choice O O O O $1,250,000 $750,000 $2,500,000 $500,000

Jerry and Ben Corporation manufactures picnic tables and other custom outdoor furniture. The corporation has fixed costs of $500,000 and a contribution margin ratio of 40%. Currently, sales are $2,000,000. What is Jerry and Ben's margin of safety? Multiple Choice O O O O $1,250,000 $750,000 $2,500,000 $500,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8E

See similar textbooks

Similar questions

Can you answer the CVP Drill #11?
Can you help me answer CVP drill #13?
Can you help with the CVP Drill #6?
Can you help me with the CVP Drill #9?
Can you help me with CVP Drill #14?
Can you help me with CVP Drill #10?
Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation $ Variable cost of each window installation Annual fixed costs Tax rate 450 $ 250 $ 175,000 40% Calculate the number of windows Best Windows must install and the revenues needed to earn a target net income of $72,000. *** Finally, calculate the revenues needed to earn a target net income or $72,000. Select the formula labels, then enter the amounts and calculate the revenues needed. Revenue required to achieve tarnet
Steps Inc sells step aerobic class equipment. The equipment sells for $15 / unit. The variable cost is $10 per unit and fixed costs are $1,750,000. What are number of units the company must sell if the company wants to achieve a target profit of $400,000
please solve the sub-parts to be solved. thanks Ziggy Creations makes and sells a single product. Individual product details are as follows: Selling price $ 45 Direct materials $20 Direct labour $10 Fixed Costs $480 000 Estimated sales 36 000 units Production capacity 40 000 units d) If Ziggy’s required a profit of $90 000, what level of sales dollars would be required? e) Variable costs are to increase by $5 per unit. If Ziggy’s wants to maintain a profit of $90,000, what will be the required sales volume? Can Ziggy’s achieve this new estimated sales volume?
Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
Sunland Enterprises produces giant stuffed bears. Each bear consists of $16 of variable costs and $13 of fixed costs and sells for $49. A wholesaler offers to buy 9,280 units at $18 each, for which Sunland has the capacity to produce. Sunland will incur extra shipping costs of $1 per bear. Determine the incremental income or loss that Sunland Enterprises would realize by accepting the special order. Incremental profit e Textbook and Media Save for Later $ Attempts: 0 of 1 used Submit Answer
Cox Electric makes electronic components and has estimated the following for a new design of one of its products: Fixed Cost $10,000 Material cost per unit = $0.15 Labor cost per unit = $0.10 Revenue per unit = $0.65 Show Transcribed Text Implement your model from part (b) in Excel using the principles of good spreadsheet design and find the profit if Cox Electric makes 18,000 new product. If required, round your answer to nearest whole number. For subtractive or negative numbers use a minus sign. (Example: -300)