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
Q.1. An item sells for $25 a unit, but a 10% discount is offered for lots of 150 units or more. A company uses this item at the rate of 20 units per day. The setup cost for ordering a lot is $50, and the holding cost per unit per day is $.30. The lead time is 12 days. The same item can also be produced in house with its setup cost being $30 and production cost per unit being $20. Should the company purchase the item or produce it in-house?
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%
Tough Tough makes two products, Rock and Hard and details are as follows: Rock Hard £ £ Selling price 20 25 Unit variable costs 11 13 Standard ratio of sales 60% 40% . Fixed costs are estimated at £1.02 million for the year and Tough is currently forecasting to generate total sales revenue of £4.4 million. Required: Calculate the break-even point in terms of total units and sales revenue, based on the forecast ratio of sales above. Sketch a profit-volume chart showing the situation in (a); show on the same chart the effect of changing the sales mix to 50% Rock and 50% Hard (keeping total forecast revenue the same). The company has realised that £325,000 of the fixed costs are only incurred by product Rock. Calculate the sales revenue required from Rock in order to cover the attributable fixed costs and provide a net contribution of £800,000 towards general fixed costs and profit.
Burke Company has a break-even of $900,000 in total sales. Assuming the company sells its product for $50 per unit, what is its margin of safety in units if sales total $1,200,000? Multiple Choice 18,000 units 1,500 units 24,000 units 6,000 units
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
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
Southampton Electronics manufactures a range of portable heaters. Most of the outpu is exported. Sales 12, 000 units £25 per Selling price unit 40% Contribution margin ratio Margin of safety percentage 30% The variable expense per unit is:0 a £7.50 per unit. O b. £17.50 per unit O c 10.00 per unit. O d. £15.00 per unit.

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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