Irn/takeAssignment/takeAssignment Main.do?inprogress=true<Margin of SafetyThe 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 OPrevious

Answer Total sales = Break Even sales + margin of safety sales

Answered: Margin of Safety The Rachel Company has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Margin of Safety a. If Canace Company, with a break-even point at $492,000 of sales, has actual sales of $600,000, 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 30%, fixed costs were $1,789,200, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)
Margin of Safety The Rachel Company has sales of $500,000, and the break-even point in sales dollars is $365,000. Determine the company's margin of safety as a percent of current sales.
Last year company A introduced a new product and sold 25,900 units at $97.00 per unit. The product variable expense $67.00 per unit with a fixed price expense of $835,500 per year. a. What is the product's net income or loss last year? b. What is the product break-even point in unit sales and dollar sales? c. Assume the company has conducted a market study that estimates it can increase sales by 5,000 units for each $2.00 reduction in its selling price. If the company would only consider increments of $2.00(e.g. $68,$66, etc) What is the maximum annual profit that can be earned on this product? What sales volume and selling price per unit generate the maximum profit? d. What would be the break-even point in unit sales and dollar sales using the selling price that was determined in the required letter c above? Thank you,
Margin of Safety Yellow Sticker Company's variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for $0.50. The monthly target operating income is $3,750. a. What is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal? $0 in dollars b. What is the monthly margin of safety in units if Yellow Sticker Company achieves its operating income goal? 0 units
Margin of Safety The Rachel Company has sales of $550,000, and the break-even point in sales dollars is $368,500. Determine the company's margin of safety as a percent of current sales.
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Multiproduct breakeven analysis and target profit, taxes Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric BrAc Sellingpriceperunt...........$S25$30 Variablecostperunit ... $14$17 Planned unit sales volume . . . . . . 800, 000 400,000 Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%. Required (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910, 000 ?
Sale price per unit is $174Variable cost is 40% of salesNet income is $23,100 Company sells 500 units per month How many units would the company have to sell to obtain a target profit of $21,000?
From 27th Edition, Carl Warren, James M. Reeve, Jonathan Duchac Chapter 18-21, Margin of Safety If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, 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 20%, fixed costs were $1,875,000, and variable costs were 80% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)

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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. % Previous 3