Pharoah Industries reported actual sales of $2,130,000 and fixed costs of $564,237. The contribution margin ratio is 30%.Compute the margin of safety in dollars and the margin of safety ratio. (Round margin of safety ratio to 1 decimal place, e.g. 52.7.)Margin of safety in dollarsMargin of safety ratio

MARGIN OF SAFETYThe margin of safety (MOS) is the difference between actual sales and break-even…

Answered: Pharoah Industries reported actual…

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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hh. Subject :- Accounting For Kosko Company, actual sales are $ 1,200,000 and break-even sales are $ 960,000 Compute (a) the margin of safety in dollars and (b) the margin of safety ratio. Margin of safety Margin of safety ratio
Compute (a) the margin of safety in dollars and (b) the margin of safety ratio with the given details below: Aactual sales for the product= 1,000,000 Break-even sales = 840,000.
According to following information, which of the following shows Margin of Safety (MS) as amount and as percentage? (You may round the result to two decimals.) Actual Sales 650,000 Total Fixed Cost 375,000 Selling price per unit 250 Variable cost per unit 100
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 50,000 27,500 22,500 14,850 $ 7,650 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage %
Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,430 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $21,870 (a)What is the contribution margin ratio? Contribution margin ratio % (b)What is the break-even point in dollars? Break-even point $ (c)What is the margin of safety in dollars and as a ratio? Margin of safety $ Margin of safety ratio % (d)If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required: $
Given the following information, find number of customers: Profit, $33,603; sales price per unit, $17.00; fixed costs, $97,197; contribution rate, .6
Compute the contribution margin ratio using the following data: sales, $5,000; total variable cost, $3,000
Compute the contribution margin ratio and fixed costs using the following data. Sales $5,200 Variable costs $3,016 Income $ 420 Contribution margin Numerator: Fixed Cost Contribution Margin Contribution Margin Ratio Denominator: = Contribution Margin Ratio Contribution margin ratio 0
Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 20,000 13,000 7,000 3,780 $ 3,220 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage %
A company had unit contribution margin of $3.60 and fixed costs of $29,664. Income was $2,520. What was the margin safety in units?
A business has selling price of P 129.50 with an average variable cost of P 54.40. Fixed costs are P 1,400,000. Calculate the following: What is the contribution margin percentage? (Answer the figures only; two decimal places)
Moon Bright Sdn. Bhd. is a manufacturer of dish cleaners. The following figures show the cost per unit of production based upon an annual production and sales of 20,000 units: RM Direct materials 80 Direct labour (variable) 40 Variable overhead 20 Fixed overhead 15 Selling price 200 1) Calculate the breakeven point, in units and in value2) Determine the margin of safety in units and in value3) Calculate the profit-volume ratio and indicate what it means.4) Given that there is a sudden extra fixed cost of RM25,000, how many extra units does the company need to sell?

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