TY INC's break-even sales are P528,000. The variable costs ratio to sales is 60%, while the net income percentage is 8%. Question: 1. What is the Margin of safety ratio 2. What is the Actual sales in pesos 3. What is the Margin of safety in pesos 4. What is the Fixed costs 5. What is the Net income 6. What is the Degree of operating leverage

TY INC's break-even sales are P528,000. The variable costs ratio to sales is 60%, while the net income percentage is 8%. Question: 1. What is the Margin of safety ratio 2. What is the Actual sales in pesos 3. What is the Margin of safety in pesos 4. What is the Fixed costs 5. What is the Net income 6. What is the Degree of operating leverage

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23E

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TY INC's break-even sales are P528,000. The variable costs ratio to sales is 60%, while the net income percentage is 8%.

Question:
1. What is the Margin of safety ratio
2. What is the Actual sales in pesos
3. What is the Margin of safety in pesos
4. What is the Fixed costs
5. What is the Net income
6. What is the Degree of operating leverage

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