The Whitehead Company has sales of $900,000, and the break-even point in sales dollars is $585,000. Determine the Whitehead company's margin of safety as a percent of current sales. fill in the blank 1 %

The Whitehead Company has sales of $900,000, and the break-even point in sales dollars is $585,000. Determine the Whitehead company's margin of safety as a percent of current sales. fill in the blank 1 %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Margin of Safety a. If Canace Company, with a break-even point at $262,700 of sales, has actual…

A: Margin of safety in dollars = Actual Sales - Break even point sales Margin of safety as a percentage…

Q: Margin of Safety a. If Canace Company, with a break-even point at $529,300 of sales, has actual…

A: "Since you have asked multiple question we will solve the first question for you. If you want any…

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: Margin of Safety a. If Canace Company, with a break-even point at $223,200 of sales, has actual…

A: The margin of safety sales are excess of actual sales over break even sales.

Q: Margin of Safety The Rachel Company has sales of $290,000, and the break-even point in sales dollars…

A: Formula used: Margin of safety = [ Current sales - Break even sales ) / Current sales ] x 100 In…

Q: The profit P, in thousand of dollars, that a manufacturer makes is a function of the number N of…

A: The break-even point is the production level where the costs of production and the revenues from…

Q: Margin of Safety a. If Canace Company, with a break-even point at $464,000 of sales, has actual…

A: Margin of safety refers computation of how much output or sales level can fall before a business…

Q: If a business had sales of $4,316,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Total sales = Margin of Safety + Break even point Break even point : At break even point, there is…

Q: a. If Canace Company, with a break-even point at $331,200 of sales, has actual sales of $480,000,…

A: The margin of safety is the difference between break-even sales and Actual Sales. Break-even sales…

Q: Current Attempt in Progress Tamarisk Manufacturing has net sales of $160000, cost of goods sold of…

A: Gross Profit - Gross Profit is a Profit Earned by the company from the sales made. This is the…

Q: Dean Company has sales of $229,000, and the break-even point in sales dollars is $119,080. Determine…

A: Margin of safety means the difference between the budget sales and breakeven sales. It means the…

Q: a. If Canace Company, with a break-even point at $568,800 of sales, has actual sales of $790,000,…

A: 1) a) Margin of safety (in dollars) = Actual sales - Break-even sales = 790,000 - 568,800 =…

Q: Net Sales Cost of Goods Sold Gross Profit Operating Expenses Company a courtertop instaler S764,500…

A: Return on invetsment = Net profit / Owner*s equity

Q: Determine the company's margin of safety percentage. Round answer to the nearest whole number.

A: Margin of safety is that portion of sales which is over and above the break even point of the…

Q: For Kosko Company, actual sales are $ 1,200,000 and break-even sales are $ 960,000 Compute (a) the…

A: Margin of safety sales are those sales over and above break even sales. At break even point fixed…

Q: coronado industries had actual sales of $800,000 when break-even sales were 680,000. what is the…

A: Sale is the amount of actual sales made by the entity during a period whereas break-even sale is the…

Q: ean Company has sales of $228,000, and the break-even point in sales dollars is $157,320. Determine…

A: Margin of safety means the difference between the budget sales and breakeven sales. It means the…

Q: Margin of Safety a. If Canace Company, with a break-even point at $325,000 of sales, has actual…

A: The margin of safety is the sales level over and above break-even sales. Margin of safety determines…

Q: Dean Company has sales of $157,000, and the break-even point in sales dollars is $111,470. Determine…

A: Formula: Margin of safety in Dollars = Current sales - Break even sales Deduction of Break even…

Q: If a business had sales of $4,219,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Explanation: Margin of safety will be formula = Actual sales - Break even point Sales…

Q: Dean Company has sales of $240,000, and the break-even point in sales dollars is $127,200. Determine…

A: Margin of safety = [(Current sales - Break-Even sales)/Current sales]×100

Q: Sales of your company is $1 mil, your total assets are $600k, your purchase cost is half of your…

A: Return on assets(ROA)= It is calculated by dividing Net income to Total assets and expressed in…

Q: Dean Company has sales of $239,000, and the break-even point in sales dollars is $145,790. Determine…

A: Introduction:- CVP analysis is used to identify the changes in costs and volume affect a company's…

Q: High-Low Method for a Service Company Boston Railroad decided to use the high-low method and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A firm has a margin of safety percentage of 25.1% based on its actual sales. The break-even point is…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: If a business had sales of $3,510,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Formulas: Margin of Safety = (Sales - Break even Sales) / Sales

Q: 7. The following are taken from Lily Company's income statement: net income. P30,000; fixed costs,…

A: The margin of safety indicates how much revenue a company can afford to lose before it start…

Q: Margin of Safety The Whitehead Company has sales of $200,000, and the break-even point in sales…

A: The margin of safety (MoS) is the difference between the sales level in the company and the…

Q: If Canace Company, with a break-even point at $308,000 of sales, has actual sales of $440,000, what…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: Dragon, Inc. has actual sales of $310,000 and a margin of safety of $136,400. What is Dragon's…

A: Break-even point in sales = Actual sales - margin of safety

Q: a. If Del Rosario Company, with a break-even point at $552,000 of sales, has actual sales of…

A: Margin of safety = Total actual sales - break even sales

Q: If a business had sales of $3,886,000 and a margin of safety of 20%, the break-even point was O a. O…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: If a business had sales of $3,632,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Breakeven is the point in the cost volume and profit analysis at which an entity is in a situation…

Q: If the company’s net profit is OMR 20,000 and the net profit ratio is 20% then the sales would…

A: Net profit ratio represents, percentage of profits earned on net sales. Net profit ratio is…

Q: Calculate the return on investment (as a %) for the given company. (Round your answer to the nearest…

A: To calculate the return on investment (ROI) as a percentage for the given company, we need to divide…

Q: If a business had sales of $3,814,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Margin of safety % = Margin of safety in dollars/Actual sales Margin of safety in dollars = Actual…

Q: Calculate the return on investment (as a %) for the given company. (Round your answer to the nearest…

A: Return on Investment: Return on Investment calculates the profit or loss based on the capital…

Q: Margin of safety The Rachel Company has sales of $530,000, and the break-even point in sales dollars…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: UOHPMB251 Corp. has a 20% margin of safety percentage based on its actual sales. The break-even…

A: BEP SALES : = $748,000 VARIABLE EXPENSES : = 40% CM RATIO : = 60%

Q: XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $110,000.…

A: Profit per unit is the selling price minus variable cost per unit as reduced by fixed expenses

Q: Margin of Safety a. If Del Rosario Company, with a break-even point at $482,400 of sales, has actual…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Question

Margin of Safety

The Whitehead Company has sales of $900,000, and the break-even point in sales dollars is $585,000.

Determine the Whitehead company's margin of safety as a percent of current sales.
fill in the blank 1 %

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

a. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2. % b. If the margin of safety for Canace Company was 40%, fixed costs were $1,627,200, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) %24
Margin of Safety The Rachel Company has sales of $500,000, and the break-even point in sales dollars is $365,000. Determine the company's margin of safety as a percent of current sales.
If a business had sales of $4,369,000 and a margin of safety of 20%, the break-even point was a.$3,495,200 b.$873,800 c.$7,864,200 d.$5,242,800
A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of safety in dollars is a. $180,000. c. $480,000. e. $300,000. b. $120,000. d. $60,000.
Dean Company has sales of $76,000, and the break-even point in sales dollars is $47,120. Determine the company's margin of safety percentage. Round answer to the nearest whole number.fill in the blank 1 %
a. If Canace Company, with a break-even point at $426,400 of sales, has actual sales of $520,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2. % p. If the margin of safety for Canace Company was 25%, fixed costs were $1,494,375, and variable costs were 75% of sales, what was the amount of actual sales dollars)? Hint: Determine the break-even in sales dollars first.)
Vishu
ANswer with formulas for upvotes
A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of safety in dollars is:
a. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000, what is the margin of safety evpressed (1) in doilars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2.
If this year Eloise Ltd. had sales of $750,000, fixed costs of $150,000, and variable costs of $350,000, what is the margin of safety in dollars?(round numbers within the calculations to 2 decimal places and choose the closest whole number) $400,000 $466,981 $450,000 $425,650
From 27th Edition, Carl Warren, James M. Reeve, Jonathan Duchac Chapter 18-21, Margin of Safety If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2. % b. If the margin of safety for Canace Company was 20%, fixed costs were $1,875,000, and variable costs were 80% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)