Serendipity Sound, Incorporated, manufactures and sells compact discs. Price and cost data are as follows: Selling price per unit (package of two CDs) Variable costs per unit: Direct material Direct labor Manufacturing overhead Selling expenses Total variable costs per unit Annual fixed costs: Manufacturing overhead Selling and administrative Total fixed costs Forecasted annual sales volume (120,000 units) In the following requirements, ignore income taxes. $ 25.00 $10.50 5.00 3.00 1.30 $19.80 $ 192,000 276,000 $ 468,000 $3,000,000
Serendipity Sound, Incorporated, manufactures and sells compact discs. Price and cost data are as follows: Selling price per unit (package of two CDs) Variable costs per unit: Direct material Direct labor Manufacturing overhead Selling expenses Total variable costs per unit Annual fixed costs: Manufacturing overhead Selling and administrative Total fixed costs Forecasted annual sales volume (120,000 units) In the following requirements, ignore income taxes. $ 25.00 $10.50 5.00 3.00 1.30 $19.80 $ 192,000 276,000 $ 468,000 $3,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the firm’s margin of safety?
Transcribed Image Text:Serendipity Sound, Incorporated, manufactures and sells compact discs. Price and cost data are as follows:
Selling price per unit (package of two CDs)
Variable costs per unit:
Direct material
Direct labor
Manufacturing overhead
Selling expenses
Total variable costs per unit
Annual fixed costs:
Manufacturing overhead
Selling and administrative
Total fixed costs
Forecasted annual sales volume (120,000 units)
In the following requirements, ignore income taxes.
$ 25.00
$10.50
5.00
3.00
1.30
$19.80
$ 192,000
276,000
$ 468,000
$ 3,000,000
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