### 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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If the company’s net profit is OMR 20,000 and the net profit ratio is 20% then the sales would be_______.
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…
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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. %