Pretty Pictures Co. has a monthly target operating income of $7,400. Variable expenses are 80% of sales and monthly fixed expenses are $820. What is the monthly margin of safety as apercentage of target sales in dollars?OA. 20.00%ⒸB. 90.02%OC. 902.44%OD. 109.98%

Contribution margin ratio :— It is calculated by deducting variable to sales ratio and 100%.…

Answered: Pretty Pictures Co. has a monthly…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

hre.2
Subject: accounting
Q7f the company's annual total sales equals 24% of the estimated net profit of $ 138,000. The number of sold units is estimated at 11,500 units. Direct costs are estimated at $ 287,500, and indirect costs estimated at $ 200000. Find total annaul sales, selling per unit, cost per unit from direct and the break-even point.
need help
Nn1.
Revenue Analysis A similar manufacturer's total monthly revenue function is .. R(q) = 240g - 0.08q? %3D where R is in dollars and q are in units of output produced and sold during the month. Currently, this manufacturer is producing 80 units a month and is planning to increase monthly output by 1 unit. Use the revenue function to compute the actual additional revenue that will be generated by the production and sale of the 81st unit. (Round to the nearest 2 decimal places, if needed) ASUS f4 f7 E3 口京团 f10 f11 因
Atlas Company has a monthly target operating income of $20,000. Variable expenses are 60% of sales and monthly fixed expenses are $11,400. What is ?John's operating leverage factor at the target level of operating income 1.75 ) 1.57 ) 1.43 O 2.00 1.35
Variable costs as a percentage of sales for Lemon Inc. are 77%, current sales are $601,000, and fixed costs are $202,000. How much will operating income change if sales increase by $36,800? a.$8,464 increase b.$28,336 decrease c.$28,336 increase d.$8,464 decrease
Company XYZ made total sales of $250,000 during the month of December. The company also incurred total expenses of $210,000. Of that amount 60% was fixed expenses. Company XYZ expects sales to increase by 13% next month. What is the expected operating profit, in ($) value, next month?Select one:a. 45,200b. 61,580c. None of the given answersd. 166,000e. 40,000
4 Atlas Company has a monthly target operating income of $20,000. Variable expenses are 60% of sales and monthly fixed expenses are $11,400. What is ?John's operating leverage factor at the targetlevel of operating income 1.75 ) 1.57 () 1.43 ) 2.00 () 1.35 ()
Use the information below to answer the following question. K-CO Company Summary Income Statement Data For the year ended December 31, 2016 S Total S per unit Sales (4,000 units) S 800,000 200.00 100% Total Variable Costs 120.00 60% Contribution Margin Total Fixed Costs 200.000 Operating Income $ 120.000 Calculate K-Co's break-even point (BE) in sales dollars. Select one: O a. $333,333 O b. $800,000 O c. $500,000 O d. $120,000
XY Company provided you the following data: Average operating assets 120,000 Margin on sales 15% Minimum required rate of return 20% Return on investment 25% Sales 300,000 Turnover 2.50 What is the residual income? (Correct ans: 21,000) need solution

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Pretty Pictures Co. has a monthly target operating income of $7,400. Variable expenses are 80% of sales and monthly fixed expenses are $620. What is the monthly margin of safety as a percentage of target sales in dollars? OA. 20.00% B. 90.02% OC. 902.44% OD. 109.98%