Majid Corporation sells a product for $145 per unit. The product's current sales are 41,300 units and its break-even sales are 32,625 units.What is the margin of safety in dollars?Multiple Choice$3,736,965$5,988,500$4,730,625$1,257,875

Margin of safety measures the excess of the current sales to the break-even sales. It is calculated…

Answered: Majid Corporation sells a product for…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

See similar textbooks

Similar questions

Maruska Corporation has provided the following data concerning its only product Selling price Current sales $ 180 per unit 29,800 units 25,032 units Break-even sales What is the margin of safety in dollars? Multiple Choice О $5,364,000 $4,505,760 $3,576,000 О $858,240
Please explain in detail
39
please help me
Moon Karak sells tea. The average selling price of a cup is OMR 0.200 and the average variable expense per cup is OMR 0.150. The average fixed expense per month is OMR 600. An average of 20,000 cups are sold each month. What is the margin of safety expressed as a percentage of sales? Select one: а. 30% b. 25% c. 35% d. None of the answers given e. 40% The correct answer is: 40%
Alvarez Company's break-even point in units is 1,650. The sales price per unit is $12 and variable cost per unit is $10. If the company sells 3,800 units, what will net income be? Multiple Choice $4,300 $7,600 $3,000. $65,400 $36,300
Kelly Company has the following data: Sales Price per unit $590 Variable Cost per unit $413 Total Fixed Costs $10,000 If the owner wants a $20,000 target profit, what would be the amount of sales reversr e tr answer to the nearest dollar.) O $42,857 O $66,667 O $100,000 O $28,571
Homoward Hardware buys cat liter for $6 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20% of cost (a) (b) (c) (d) (e) (7) For how much should the bags be sold? What is the amount of markup included in the selling price? What is the rate of markup based on selling price? What is the rate of markup based on cost? What is the break-even price? What operating profit or loss is made if a bag is sold for $7 509
One of the bestselling items your firm offers sells for $19.99 a unit. The variable cost per unit is $11.59 and the carrying cost per unit is $.58. You sell 10,415 of these units each year. The fixed cost to order this item is $65. What is the economic order quantity? O 1,080 units 1,773 units 1,946 units 1,528 units 1,314 units
Please Solve This General Accounting Question
Sugar Corporation manufactures specialized sugar cubes that are used in tea. The company has a sales price of $28, variable costs of $16 per unit, and fixed costs of $28,500. Sugar expects profit of $319,000 at its anticipated level of sales. If Sugar sells 4,100 units more than expected, how much higher will its profits be? Multiple Choice $319,000 $114,800 $49,200 $269,800
Pepper Inc. produces lacrosse sticks. The selling price per stick is $42. Their variable cost per unit is $28, and the fixed cost per unit is $12 when 8,000 units are produced and sold. Approximately how much in sales dollars must the company have to breakeven? O $6,857 $201,600 O $288,000 $192,667 O $48,000

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Majid Corporation sells a product for $145 per unit. The product's current sales are 41,300 units and its break-even sales are 32,625 units. What is the margin of safety in dollars? Multiple Choice $3,736,965 $5,988,500 $4,730,625 $1,257,875