a. If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000,
Question:
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)? (Determine the break-even in sales dollars first.)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
a 1 Margin of Safety dollars SalesSales at BreakEven Point 1200000 960000 240000 2 ...View the full answer
Answered By
Mehwish Aziz
What I have learnt in my 8 years experience of tutoring is that you really need to have a friendly relationship with your students so they can come to you with their queries without any hesitation. I am quite hardworking and I have strong work ethics. Since I had never been one of those who always top in the class and always get A* no matter what, I can understand the fear of failure and can relate with my students at so many levels. I had always been one of those who had to work really hard to get decent grades. I am forever grateful to some of the amazing teachers that I have had who made learning one, and owing to whom I was able to get some extraordinary grades and get into one of the most prestigious universities of the country. Inspired by those same teachers, I am to be like one of them - who never gives up on her students and always believe in them!
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Question Posted:
Students also viewed these Accounting questions
-
a. If Go-Go Buggies Company, with a break-even point at $6,000,000 of sales, has actual sales of $8,000,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? b....
-
a. If Fama Company, with a break-even point at $360,000 of sales, has actual sales of $480,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? b. If the...
-
(a) If Fama Company, with a break-even point at $360,000 of sales, has actual sales of $480,000, what is the margin of safety expressed (1) In dollars and (2) As a percentage of sales? (b) If the...
-
1. Our Play has (14.4/9.86) days of sales tied up in receivables, which is much (higher/lower) than the industry average. It takes Our Play (less/more) time to collect cash from its customers than it...
-
Rick Williams, a systems analyst, and Carla Moore, a programmer/ analyst, completed a set of DFDs representing a data and process model of the SWL payroll system project. Rick had recently attended a...
-
Refer to QS 4-5 and prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method and a perpetual inventory system. In QS...
-
When should benchmarking be preferred to direct estimates of the magnitudes of benefits? When should direct estimates be preferred? Is it appropriate to use both?
-
Cruz Video Center accumulates the following cost and market data at December 31 Compute the lower-of-cost-or-market valuation for the companys totalinventory. Market Inventory Categories Cameras...
-
[1] In Calculus, it can be proven that Write a MATLAB script that approximates this infinite series by a finite such that the absolute error falls below a certain tolerance entered by the user. For...
-
A variable dielectric capacitive displacement sensor consists of two square metal plates of side 5 cm, separated by a gap of 1 mm. A sheet of dielectric material 1 mm thick and of the same area as...
-
Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:...
-
Quigley Inc. manufactures memory chips for electronic toys within a relevant range of 200,000 to 600,000 memory chips per year. Within this range, the following partially completed manufacturing cost...
-
What is a cost object? Give three examples.
-
Identify and post an example of public relations that you come across. Discuss three ways noted in the example that help to articulate a firm's value proposition to its audience.
-
Why Amazon is opening brick-and-mortar stores (or acquiring Whole Foods). Gathering support from this article indicate why.? Why is it that encouraging online customers to visit a store increased...
-
Why do you deem Reebok brand "inauthentic" Provide and explain at least 3 examples (pictures and videos are best!) that show its inauthenticity. Describe how this is inauthentic to the brand's story?
-
Discuss the benefits of using Influencers. Identify possible liabilities of using Influencers that may not always act in an ethical manner. Then identify one or more Influencers you wish to use for...
-
According to Blumenthal et al, most of the "new drugs aren't even new drugs. They are modified versions of existing medications to protect the patent life, and profits, of existing drugs. Group, why...
-
In Problem use the given annual interest rate r and the compounding period to find i, the interest rate per compounding period. 5.44% compounded quarterly
-
Which of the followingcarbocations is the least stable? CH3CH2 . CH3CHCH3 CH3 I . CH3C0 T CH3 IV. V. CH3 CH3CCH2 CH3
-
Deere & Co. manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere & Co.'s credit division loans money to...
-
Deere & Co. manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere & Co.'s credit division loans money to...
-
Cost data for Mix-A-Lot Manufacturing Company for the month ended March 31, 2016, are as follows: a. Prepare a cost of goods manufactured statement for March 2016. b. Determine the cost of goods sold...
-
1. Consider the following pseudocode. What does it produce? Set a = 0 Set b = 0 Set c = 1 Set d = 1 Report the value of d Repeat until a equals 10 Set d = b + c Set b = c Set c = d Add 1 to a Report...
-
3. It has been observed that a particular plant's growth is directly proportional to time. It measured 2 cm when it arrived at the nursery and 2.5 cm exactly one week later. If the plant continues to...
-
List four equivalent forms for the rational expression. x-2 x+9
Study smarter with the SolutionInn App