Relax Pte Ltd produced and sold 37,500 luxury scented candles during the year 2022 at $80 per unit. Total fixed cost was $900,000 while variable cost was $50 per unit. Determine the breakeven point in units and in $. Compute the margin of safety in $ and in %.
Q: If average revenue per unit is expected to be $25 and cost of goods sold are expected to be $17 per…
A: The breakeven point represents the level of sales or units sold at which total revenue equals total…
Q: (c) What is the contribution margin ratio? Contribution margin ratio What is the margin of safety in…
A: Given in the question: Sales Quantity 2500 Barrels Unit Selling Price $40 Per unit…
Q: Shalom Company sold 20,000 units for P100 per unit. The variable cost per unit is P70 and the total…
A: A high margin of safety provides a company with financial stability, flexibility, and competitive…
Q: Blossom Company makes radios that sell for $40 each. For the coming year, management expects fixed…
A: Contribution margin per unit = sales price - variable costs = $40 per unit - $32 per unit = $8 per…
Q: In the current year, Comfy Couch Company expected to sell 11,300 leather sofas. Fixed costs for the…
A: Formula: Margin of safety in units = Expected sales units - Break even sales units
Q: How do you compute the monthly margn of safety in dollars if the shop has a monthly target profit…
A: Given that: Target profit = $54000 Variable costs = 20% of sales Fixed costs = $18000
Q: Gladstorm Enterprises sells a product for $48 per unit. The varlable cost is $32 per unit, while…
A: Break Even Point - Break Even Point is the point where company has recovered its cost which is fixed…
Q: total contribution .margin
A: Total contribution margin = Total sales - Total variable cost
Q: Gladstorm Enterprises sells a product for $52 per unit. The variable cost is $37 per unit, while…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales…
A: Sales 2,200 units Sales price $75 per unit Variable costs $45 per unit Fixed costs…
Q: Adams Enterprises produces a product with fixed costs of $49,900 and variable cost of $2.70 per…
A: Contribution margin is the difference between the sales and the variable cost, or in other words it…
Q: Cyan Corporation has provided the following data concerning its only product: Selling price $ 90…
A: Margin of safety in units = 11,600 - 10,324 = 1,276
Q: The unit selling price is $75 and the variable cost per unit is $33 and the total fixed costs are…
A: Margin of safety = Actual sales - Break-even point Break-even point = Total fixed costs/PV ratio…
Q: Gladstorm Enterprises sells a product for $46 per unit. The variable cost is $30 per unit, while…
A: Your company has reached its break-even point when its entire expenses and total revenues are equal.…
Q: Jasmine Incorporated sells a product for $61 per unit. Variable costs per unit are $31, and fixed…
A: Break Even Point - It Is The Point Of Production Where Total Costs Is Equal To Total Revenue. At…
Q: Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $34 per unit, while…
A: Lets understand the basics. Break even point is a point at which no profit no loss condition arise.…
Q: Using the variable cost concept, determine the selling price for 28,400 units using the following…
A: Variable cost means the cost which vary with the level of output. Fixed cost remain fixed whatever…
Q: Legrand Company produces hand cream. In 2018, their financial information is as follows: Each jar…
A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…
Q: XYZ company, produced 100 units, units sold: 80, selling price: 24 Total variable cost: 2000$, Total…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Bellevue Corporation sells a product for $310 per unit. The product's current sales are 14,200 units…
A: Margin of safety in units = 14,200 - 10,224 = 3,976
Q: If Pluto Company sold 3000 units at sales price of SR45. The variable cost per unit is SR25.…
A: Introduction: Contribution margin per unit: Deduction of all variable costs from the sales price…
Q: The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales =…
A: Break-even point indicates a point of sales wither in units or dollars where the company will only…
Q: In the current year, Comfy Couch Company expected to sell 11,300 leather sofas. Fixed costs for the…
A: Formula: Margin of safety units = Total sales units - Break even sales units
Q: Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are…
A: Margin of safety: MOS termed as Margin of safety which is defined as the difference among the actual…
Q: Gladstorm Enterprises sells a product for $53 per unit. The variable cost is $36 per unit, while…
A: 1. CONTRIBUTION MARGIN : = SALES - VARIABLE COST 2. BREAKEVEN POINT IN SALES UNITS : = FIXED COST /…
Q: undle Company makes a product that sells for $33 per unit. The company pays $22 per unit for the…
A: A margin of safety is an investing principle that states that an investor should only purchase…
Q: Zulu sells its waterproof phone case for $114 per unit. Fixed costs total $222,000, and variable…
A: In case of target income, we will calculate units sold by putting x as units sold and then solving…
Q: A company provided the following data: Selling price per unit $80 Variable cost per unit $45 Total…
A: The number of units required to earn a profit can be calculated as sum total fixed costs and profit…
Q: Zhao Company has fixed costs of $342,200. Its single product sells for $173 per unit, and variable…
A: Margin of safety: Margin of safety is the point after which profit will happen in multiple…
Q: Oriole Industries produces and sells a cell phone-operated home security control systems.…
A: Marginal Costing Income Statement is One of the Important Cost Management Accounting Techniques.…
Q: Calculate the number of helmets Head-First must sell to earn operating income of $81,900.…
A: In this numerical has covered the concept of Cost - Volume-Profit Analysis and Contribution Margin…
Q: A jeans maker is designing a new line of jeans called Slams. Slams will sell for $320 per unit and…
A:
Q: Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,200…
A: Break-even analysis is a technique which plays an important role in decision making and it helps…
Q: Sabrina Inc, sells table for $110. The Unit Variable Cost per table is $85. Fixed Costs Total…
A: Contribution Per Unit = Selling Price - Variable Cost = $110 - $85 = $25 Break even Point = Fixed…
Q: Marsh microns produces an product and provides the following information for the year 2019 Margin of…
A: Selling price per unit: = Margin of Safety / Margin of Safety in quantity Profit computation: =…
Q: Current operating income for Bay Area Cycles Company is $26,000. Selling price per unit is $100, the…
A: Contribution margin is defined as the excess of the selling price over the variable cost incurred in…
Q: The selling price of a particular product is $81.00 per unit, the variable expense is $55.00 per…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: ooner Industries charges a price of $82 and has fixed cost of $325,000. Next year, Sooner expects to…
A: Computation of variable cost and contribution margin ratio Contribution margin= (Contribution/…
Q: this information, what is Your Company's Your Company's expected net income when 5,000 units are…
A: Option D Or $26250 Sales (5000 × $20) $100000 Less : Variable Cost (1 - 0.35) × Sales $65000…
Q: Stuart Company makes a product that sells for $35 per unit. The company pays $24 per unit for the…
A: The amount of sales above a company's break-even point is referred to as its margin of safety. In…
Q: XYZ Company's product has a contribution margin per unit of $11.25 and a variable cost ratio of 60%.…
A: Selling price means the cost for which something really sells. selling cost is the sum a purchaser…
Q: Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $34 per unit, while…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed…
A: Break-even point in units is computed by dividing the fixed cost by the contribution margin per…
Q: In the year 2020, kim plastics sold 100,000 units of its product. Selling price per unit was 100.…
A: Operating income: Operating income is the amount of revenue realized from the operations of the…
Q: quired: sper Company has sales of $182,000 and a break-even sales point of mpute Jasper's margin of…
A: The difference between the actual sales and break-even sales is considered as a margin of safety.…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Assume a sales volume of 9120 units, unit selling price of $18, unit variable cost of $10, and total fixed costs of $30400. What is the margin of safety in sales dollars? O $68400 O $164160 O $34200 O $95760Graham Enterprises sells universal remotes for $1.50 each. Unit variable expenses total $0.90. The breakeven sales in units is 3,000 and expected sales in units is 4,300. The margin of safety in dollars is:Brownstone Windows is a small company that installs windows. Its cost structure is as follows: E (Click the icon to view the cost structure.) Brownstone Windows' breakeven revenues is $740,000 and breakeven units is 1,850. Calculate the margin of safety in units and dollars and the margin of safety percentage in dollars if Brownstone Windows expects to sell 3,200 windows in the year. Begin with calculating the margin of safety in dollars. Determine the formula to calculate the margin of safety in dollars. Then, enter the amounts and calculate the margin of safety in dollars. Margin of safety in dollars Next, determine the formula, enter the amounts, and calculate the margin of safety in units. Margin of safety in units Finally, calculate the margin of safety percentage in dollars if Brownstone Windows expects to sell 3,200 windows in the year. Select the formula labels, then enter the amounts and calculate the margin of safety percentage. (Round your final percentage to one decimal…
- CVP analysis—what-if questions; breakeven Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $27,000 per month. Required:(Unless otherwise stated, consider each requirement separately.)a. Calculate the break-even point expressed in terms of total sales dollars and sales volume.b. Calculate the margin of safety and the margin of safety ratio. Assume current sales are $75,000.c. Calculate the monthly operating income (or loss) at a sales volume of 5,400 units per month.d. Calculate monthly operating income (or loss) if a $2 per unit reduction in selling price results in a volume increase to 8,400 units per month.e. What questions would have to be answered about the cost–volume–profit analysis simplifying assumptions before adopting the price cut strategy of part d ?f. Calculate the monthly operating income (or loss) that would result from a$1 per unit price increase and a $6,000 per month…A jeans maker is designing a new line of jeans called Slams. Slams will sell for $315 per unit and cost $214.20 per unit in variable costs to make. Fixed costs total $66,000. (Round your answers to 2 decimal places.) 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Numerator: Denominator: 3. Compute Income if 6,200 units are produced and sold Income Contribution Margin Ratio Contribution margin ratio 0Gladstorm Enterprises sells a product for $52 per unit. The variable cost is $37 per unit, while fixed costs are $13,770. Determine the: Round to the nearest whole number of units. a. Break-even point in sales units _ b. Determine the break-even point in sales units if the selling price increased to $64 per unit _ units
- Zulu sells its waterproof phone case for $100 per unit. Fixed costs total $177,000, and variable costs are $38 per unit. Compute the units that must be sold to get a target income of $210,500. Units to be sold to achieve targeted income Numerator: Denominator: Units to Achieve Target Units to achieve target %3DXYZ Company's product has a contribution margin per unit of $12 and a variable cost ratio of 80%. What is the selling price of the product? Select one: O a. $37.5. O b. $28.125. O c. $22.5. O d. $120. O e. $60.Halifax Products sells a product for $118. Variable costs per unit are $67, and monthly fixed costs are $168,300. a. What is the break-even point in units? Break-Even Point units b. How many units would need to be sold to earn a target profit of $102,000? Total Required Sales units c. Assuming they achieve the level of sales required in part b, what is the margin of safety in sales dollars? Margin of Safety
- 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 $24,900. What is the margin of safety?Develop an equation for total monthly production costs. Total Monthly Production costs = Fixed Costs + Variable Costs = _____________ + ($ per unit X Number of units) Predict total costs for a monthly production volume of 9,000 units.Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects to sell 15,600 units and make operating income of $172,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.