Margin of safety: It is supposed to be the difference amount of actual sales and the break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss. The contribution margin per unit.

Question

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Answer 1

Question

Chapter 2, Problem 1TF15

1.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and the break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin per unit.

2.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin ratio.

3.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The variable expense ratio.

4.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales increases to 1001 units.

5.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales decreases to 900 units.

6.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales volume decreases by 100 units with an increase of $2 per unit in selling price.

7.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income with an increase in variable cost by $1, advertising cost by $1500 unit sales by 250 units.

8.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in unit sales.

9.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in dollar sales.

10.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The number of units to be sold to achieve a target profit of $5000.

11.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The margin of safety in dollars along with its percentages.

12.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage.

13.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

To determine: The degree of operating leverage when the percent in net operating income increases with an increase of 5% in sales.

14.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage when total variable expenses are $6000; total fixed expenses are $12000.

15.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The estimated percent increase in net operating income of a 5% increase in sales.

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Answer 2

Question

Chapter 2, Problem 1TF15

1.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and the break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin per unit.

2.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin ratio.

3.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The variable expense ratio.

4.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales increases to 1001 units.

5.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales decreases to 900 units.

6.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales volume decreases by 100 units with an increase of $2 per unit in selling price.

7.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income with an increase in variable cost by $1, advertising cost by $1500 unit sales by 250 units.

8.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in unit sales.

9.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in dollar sales.

10.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The number of units to be sold to achieve a target profit of $5000.

11.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The margin of safety in dollars along with its percentages.

12.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage.

13.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

To determine: The degree of operating leverage when the percent in net operating income increases with an increase of 5% in sales.

14.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage when total variable expenses are $6000; total fixed expenses are $12000.

15.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The estimated percent increase in net operating income of a 5% increase in sales.

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Answer 3

Question

Chapter 2, Problem 1TF15

1.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and the break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin per unit.

2.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin ratio.

3.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The variable expense ratio.

4.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales increases to 1001 units.

5.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales decreases to 900 units.

6.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales volume decreases by 100 units with an increase of $2 per unit in selling price.

7.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income with an increase in variable cost by $1, advertising cost by $1500 unit sales by 250 units.

8.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in unit sales.

9.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in dollar sales.

10.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The number of units to be sold to achieve a target profit of $5000.

11.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The margin of safety in dollars along with its percentages.

12.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage.

13.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

To determine: The degree of operating leverage when the percent in net operating income increases with an increase of 5% in sales.

14.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage when total variable expenses are $6000; total fixed expenses are $12000.

15.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The estimated percent increase in net operating income of a 5% increase in sales.

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Answer 4

Question

Chapter 2, Problem 1TF15

1.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and the break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin per unit.

2.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin ratio.

3.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The variable expense ratio.

4.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales increases to 1001 units.

5.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales decreases to 900 units.

6.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales volume decreases by 100 units with an increase of $2 per unit in selling price.

7.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income with an increase in variable cost by $1, advertising cost by $1500 unit sales by 250 units.

8.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in unit sales.

9.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in dollar sales.

10.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The number of units to be sold to achieve a target profit of $5000.

11.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The margin of safety in dollars along with its percentages.

12.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage.

13.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

To determine: The degree of operating leverage when the percent in net operating income increases with an increase of 5% in sales.

14.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage when total variable expenses are $6000; total fixed expenses are $12000.

15.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The estimated percent increase in net operating income of a 5% increase in sales.

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Check out a sample textbook solution

See solution

Answer 5

Chapter 2, Problem 1TF15

1.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and the break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin per unit.

2.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin ratio.

3.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The variable expense ratio.

4.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales increases to 1001 units.

5.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales decreases to 900 units.

6.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales volume decreases by 100 units with an increase of $2 per unit in selling price.

7.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income with an increase in variable cost by $1, advertising cost by $1500 unit sales by 250 units.

8.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in unit sales.

9.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in dollar sales.

10.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The number of units to be sold to achieve a target profit of $5000.

11.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The margin of safety in dollars along with its percentages.

12.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage.

13.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

To determine: The degree of operating leverage when the percent in net operating income increases with an increase of 5% in sales.

14.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage when total variable expenses are $6000; total fixed expenses are $12000.

15.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The estimated percent increase in net operating income of a 5% increase in sales.

Answer 6

Chapter 2, Problem 1TF15

1.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and the break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin per unit.

Answer 7

Chapter 2, Problem 1TF15

1.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and the break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin per unit.

Answer 8

2.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin ratio.

Answer 9

2.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin ratio.

Answer 10

3.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The variable expense ratio.

Answer 11

3.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The variable expense ratio.

Answer 12

4.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales increases to 1001 units.

Answer 13

4.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales increases to 1001 units.

Answer 14

5.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales decreases to 900 units.

Answer 15

5.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales decreases to 900 units.

Answer 16

6.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales volume decreases by 100 units with an increase of $2 per unit in selling price.

Answer 17

6.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income if sales volume decreases by 100 units with an increase of $2 per unit in selling price.

Answer 18

7.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income with an increase in variable cost by $1, advertising cost by $1500 unit sales by 250 units.

Answer 19

7.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The net operating income with an increase in variable cost by $1, advertising cost by $1500 unit sales by 250 units.

Answer 20

8.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in unit sales.

Answer 21

8.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in unit sales.

Answer 22

9.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in dollar sales.

Answer 23

9.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in dollar sales.

Answer 24

10.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The number of units to be sold to achieve a target profit of $5000.

Answer 25

10.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The number of units to be sold to achieve a target profit of $5000.

Answer 26

11.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The margin of safety in dollars along with its percentages.

Answer 27

11.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The margin of safety in dollars along with its percentages.

Answer 28

12.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage.

Answer 29

12.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage.

Answer 30

13.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

To determine: The degree of operating leverage when the percent in net operating income increases with an increase of 5% in sales.

Answer 31

13.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

To determine: The degree of operating leverage when the percent in net operating income increases with an increase of 5% in sales.

Answer 32

14.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage when total variable expenses are $6000; total fixed expenses are $12000.

Answer 33

14.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage when total variable expenses are $6000; total fixed expenses are $12000.

Answer 34

15.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The estimated percent increase in net operating income of a 5% increase in sales.

Answer 35

15.

To determine

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The estimated percent increase in net operating income of a 5% increase in sales.

Answer 36

Expert Solution & Answer

Answer 37

Expert Solution & Answer

Answer 38

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Answer 39

Ch. 2 - Prob. 2.1Q Ch. 2 - Prob. 2.2Q Ch. 2 - Prob. 2.3Q Ch. 2 - Prob. 2.4Q Ch. 2 - Prob. 2.5Q Ch. 2 - Prob. 2.6Q Ch. 2 - Prob. 2.7Q Ch. 2 - Prob. 2.8Q Ch. 2 - Prob. 2.9Q Ch. 2 - Prob. 1AE

Margin of safety: It is supposed to be the difference amount of actual sales and the break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss. The contribution margin per unit.

Introduction: Margin of safety: It is supposed to be the difference amount of actual sales and the break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss. The contribution margin per unit.

Introduction: Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss. The contribution margin ratio.

Introduction: Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss. The variable expense ratio.

Introduction: Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss. The break-even point in unit sales.

Introduction: Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss. The break-even point in dollar sales.

Introduction: Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss. The degree of operating leverage.

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Chapter 2 Solutions

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and the break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin per unit.

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The contribution margin ratio.

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The variable expense ratio.

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in unit sales.

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The break-even point in dollar sales.

Introduction:

Margin of safety: It is supposed to be the difference amount of actual sales and break-even sales. It plays an important role by depicting the revenue value which can be reduced to equalize to the break-even point of no profit- no loss.

The degree of operating leverage.