The selling price is $50 per unit. Breakeven volume is 2,000 units. Currentsales volume is 2,500 units. The margin of safety is:25%80%20%75%500 units

the simple income statement is prepared by the company in order to find the profit that is made by…

Answered: The selling price is $50 per unit.…

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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Similar questions

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 $95760
Danny’s Lawn Equipment has actual sales of $800,000 and a break-even point of $520,000. How much is its margin of safety ratio? Group of answer choices 54% 46% 65% 35%
Answer with formulas and to be very soon
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 %.
Sheridan Company Equipment has actual sales of $900000 and a break-even point of $540000. How much is its margin of safety ratio? 33% 67% 40% 60%
Sales = 7000 units with selling price of OMR 12 per unit, Break-even point = 4000 units, Fixed cost = OMR 15000. What is the amount of Profit? Select one: a. OMR 6000 b. OMR 9750 c. OMR 11250 d. OMR 7250
Calculate the Margin of Safety, expressed as a percentage of Sales, given the following data: Sales $6,000,000.00 Variable Costs = 60% of Sales Fixed Costs = $1,800,000.00 Break-Even Sales = $4,500,000.00 Maximum Capacity of Sales = $10,000,000.00 = 15.0% 18.0% 33.3% 25.0%
If Sales are $2,000,000 and the Break Even point is $1,500,000. What is the Margin of Safety (ratio)? A. 33% B. 175% C. 25% D. 75%
Using this information, what is Your Company's expected total contribution margin when 5,000 units are sold? Expected sales in units 5,000 Sales price per unit $20 Margin of safety in units 3,750 Expected Breakeven Contribution margin ratio 35% $35,000 $48,750 $65,000 $26,250
Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and variable costs are £12 per unit. What is the margin of safety? Select one: a. 66.7% b. 25.0% c. 11.1% d. 40.0%
Use the following information to determine the margin of safety in dollars: Unit sales... 50,000 Units $500,000 Dollar sales... Fixed costs. Variable costs. $204,000 $187,500

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The selling price is $50 per unit. Breakeven volume is 2,000 units. Current sales volume is 2,500 units. The margin of safety is: 25% 80% 20% 75% 500 units