n the current year, Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200. Becker Sofa Company's margin of safety (MOS) in sales dollars is:

n the current year, Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200. Becker Sofa Company's margin of safety (MOS) in sales dollars is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 2,250. 3,250. 2,875. 5,750. 6,750.

A: Margin of safety sale is sales above the Breakeven point.

Q: Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has…

A: The question is related to High-low method of segregation of Cost into Variable cost and Fixed cost…

Q: 5 Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…

Q: Hamilton Tours offers small group tours of the local area. The cost of a tour is $77 per person and…

A: Breakeven is the point of no profit, no loss. Hence, at this point, sales should be equal to cost…

Q: Kelvin Co. produces and sells socks. Variable costs are budgeted at $2 per pair, and fixed costs for…

A: Number of units required to be sold in units to earn a desired profit = (Total Fixed cost + Desired…

Q: Eddie Barzoon Inc. produces a variety of products. One division makes extremely realistic Halloween…

A: An Income Statement is a company's financial face in simple words it shows the income and expenses…

Q: For the current year, Electric Corporation expected to sell 42,500 industrial power cords. Fixed…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The margin…

Q: The sales in units required by Photo Finish to make an after-tax profit (TA) of $20,000, given an…

A: Introduction:- Cost-volume-profit (CVP) analysis is an important and systematic method that provides…

Q: Bernard Tires sells tires to car dealerships for an average of $30 each. The variable cost of each…

A: Margin of Safety = Current sales - Break even Break even = Fixed Cost/ Sales - Variable cost

Q: Your Company's single product has a selling price of $15 per unit. Last year the company variable…

A: Given information, Selling price=$15 per unit Variable cost= $9 per unit Fixed expenses =$90,000 Net…

Q: The Company manufactures zamboozas. The selling price of the zamboozas is $45 per unit and variable…

A: Here in this question we are required to calculate sales that requires to achieve target profit. For…

Q: Data for MicroMatrix Corporation are shown below in the table. The company's fixed expense is…

A: Computation of the increase (decrease) in net operating income if monthly advertising budget…

Q: Last year, Hever Inc. had sales of $936,000, based on a unit selling price of $390. The variable…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Fronteeth Corp. plans to sell 500,000 units of a product at a price of P19.50 per Fixed costs for…

A: Gross profit = Sales - variable cost (or) profit before tax + fixed costs Given data Sales…

Q: nufacturing cost $ 22 Fixed manufacturing cost $ 177,000 per month Variable selling &…

A: Answer : Margin of safety = Actual sales in unit - Break even sales in unit Actual sales in unit =…

Q: Sagar

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Q: Currently, you sell 1,000 units of product A per month at a price of $40 per unit. The variable…

A: Solution... Unit variable cost = Direct material + Direct labor + Variable overhead = $10 + $4…

Q: Last year, Hever Inc. had sales of $500,000, based on a unit selling price of $250. The variable…

A: To construct a cost-volume-profit (CVP) chart and determine the break-even sales for Hever Inc. from…

Q: What impact would accepting this special order have on operating profit? b. Should RTD accept the…

A: A special order decision of acceptance the order is dependent upon the result of outcome of effect…

Q: For the current year, Power Cords Corp. expected to sell 40,400 industrial power cords. Fixed costs…

A: Margin of safety % = [current sales units - Break even sales units]/Current sales in Units

Q: Wet Mop Incorporated expects to sell 10,000 mops. Fixed costs (for the year) are expected to be…

A: There are two type of costs being incurred in the business. One is fixed costs and other is variable…

Q: Framing House, Inc. produces and sells picture frames. Variable costs are expected to be $15 per…

A: sales dollars required to make a desired before tax profit = (Fixed cost + Desired…

Q: Ratchet Ltd expects to sell 30,000 units this year. The selling price is set at $25 per unit. The…

A: Cost volume profit analysis is useful to find out the different sales volume on the basis of…

Q: The Shoebottom Company has a maximum production capacity of 35,000 units per year. For that capacity…

A: Total Cost for 35000 units=Fixed Cost+Variable cost Fixed Cost =340000 Variable Cost =35000x70…

Q: Last year, Bread City had sales of 70,000 loaves resulting in revenues of $350,000. Variable costs…

A: Solution:- Profit means the surplus of revenue over the incurred costs.

Q: Cotton Company produces and sells socks. Variable costs are budgeted at $2 per pair, and fixed costs…

A: Break-even point is the level of sales or revenue at which a business generates neither profit nor…

Q: Blossom Company makes radios that sell for $40 each. For the coming year, management expects fixed…

A: Solution: Contribution margin ration = Contribution margin / Sales price = (40 - 32) / 40 = 8/40 =…

Q: the current year, Power Cords Corp. expected to sell 42,300 industrial power cords. Fixed costs were…

A: Margin of safety in units = Total sales in units - Break-even sales in units Break-even sales in…

Q: Sunland Orthotics Company distributes a specialized ankle support that sells for $ 40. The company’s…

A: The contribution margin ratio describes the difference between the company's sales and variable…

Q: Photo Finish, Incorporated produces and sells picture frames. Variable costs are expected to be $17…

A: The break-even sales are calculated as fixed cost divided by contribution margin ratio.

Q: Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has…

A: Highlow method considers the highest level and lowest level of activity and compares the total cost…

Q: Burgandy Manufacturing produces a single product that sells for $100. Variable costs per unit equal…

A: Break-even point refers to the refers to the point where a company make no profit and no loss. At…

Question

In the current year, Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200.

Becker Sofa Company's margin of safety (MOS) in sales dollars is:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Calculating the required part

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Stratford Company distributes a lightweight lawn chair that sells for $ 40 per unit . Variable expenses are expenses total $ 672,000 annually . 40\% of sales , and fixed Required : Answer the following independent questions : 1. What is the product's CM per unit ?Refer to the original data . Assume that the company sold 44,000 units last year . The sales manager is convinced that a 7 % reduction in the selling price , combined with a increase in advertising expenditures , would increase annual unit sales by . Prepare two contribution format income statements : one showing the results of last year's operations , and one showing what the results of operations would be if these changes were made . ( Do not round intermediate calculations . Round " Per Unit " answers to 2 decimal places . ) 30\% Answer is not complete . Last Year Proposed Total Per Unit Total Per Unit Sales Less Variable expenses Contribution margin $ 24.00 $ 7.00 Less Fixed expenses Net operating income 5 - b . Would you…
In the current year, Becker Sofa Company expected to sell 12,900 leather sofas. Fixed costs for the year were expected to be $8,404,500; unit sales price was budgeted at $5,050; and unit variable costs were expected to be $2,650.Becker Sofa Company's margin of safety (MOS) in units is: Multiple Choice 9,698. 8,898. 10,798. 9,998. 9,398.
Your company’s single product has a selling price of $15 per unit. Last year the company variable costs were $9 per unit, fixed expenses were $90,000 and a net operating income was $30,000. A study by the sales manager disclosed that a 15% increase in the selling price would reduce unit sales by 10%. How many u it’s were sold last year?
Fountain Corp. has a selling price of $14 per unit and variable costs of $9.80 per unit. When 18,000 units are sold, profits equaled $24,900. What is the margin of safety?
Compute (a) the margin of safety in dollars and (b) the margin of safety ratio with the given details below: Aactual sales for the product= 1,000,000 Break-even sales = 840,000.
During the current year, OutlyTech Corp. expected to sell 22,500 telephone switches. Fixed costs for the year were expected to be $12,142,500, the unit sales price was budgeted at $3,250, and unit variable costs were budgeted at $1,400. OutlyTech's margin of safety (MOS) in units is (rounded up to nearest whole number): Multiple Choice 17,106. 15,936. 19,716. 15,806. 21,026.
During the current year, Mute Corporation expected to sell 24,300 telephone switches. Fixed costs for the year were expected to be $12,145,500, the unit sales price was budgeted at $3,350, and unit variable costs were budgeted at $1,560. Mute's margin of safety ratio (MOS %) is: (Do not round intermediate calculations.) Multiple Choice 72.07%. 87.82%. 71.07%. 93.32%. 76.97%.
During the current year, Mute Corporation expected to sell 24,600 telephone switches. Fixed costs for the year were expected to be $12,147,000, the unit sales price was budgeted at $3,500, and unit variable costs were budgeted at $1,680. Mute's margin of safety (MOS) in units is Multiple Choice O O 17,925. 21,705. 23,015. 19,095. 17,795.
Which of the following statements is true regarding minimum corporate income tax?