### Margin of SafetyThe Whitehead Company has sales of $200,000, and the break-even point in sales dollars is $132,000.Determine the Whitehead company's margin of safety as a percent of current sales.[Input box for answer] %

The margin of safety (MoS) is the difference between the sales level in the company and the…

Answered: Margin of Safety The Whitehead Company…

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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income statement total per unit Units 44,000 1 Sales $220,000 $5.00 Cost of Sales(variable expenses) 88,000 2.00 Gross Margin 132,000 3.00 Operating Costs(fixed expneses) 125,500 2.85 Net Profit 6,500 15 Now do this activity a second time with a higher selling price. Calculate break-even at a $7.00 selling price. Using the information from the above income statement, calculate the break-even per unit, the gross margin percent, and the break-even total sales. Calculate break-even based on units. Fixed Costs/ (Sales price per unit – Variable costs per unit) = Break Even in Units Calculate break-even based on Total Sales. Gross Margin/ Sales = Gross…
If a business had sales of $3,814,000 and a margin of safety of 20%, the break-even point was Oa. $4,576,800 Ob. $762,800 Oc. $6,865,200 Od. $3,051,200
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Margin of safety The Rachel Company has sales of $530,000, and the break-even point in sales dollars is $445,200. Determine the Rachel company's margin of safety as a percent of current sales. %
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a. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000, 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 40%, fixed costs were $1,627,200, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) %24
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Margin of Safety The Whitehead Company has sales of $200,000, and the break-even point in sales dollars is $132,000. Determine the Whitehead company's margin of safety as a percent of current sales. %