Margin of safety is computed as: (a) Actual sales Break-even sales. (b) Contribution margin Fixed

Question:

Margin of safety is computed as:

(a) Actual sales − Break-even sales.

(b) Contribution margin − Fixed costs.

(c) Break-even sales − Variable costs.

(d) Actual sales − Contribution margin.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial And Managerial Accounting

ISBN: 9781118004234

1st Edition

Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

Question Posted: Feb 15, 2024 09:00 AM

See More Questions

Find the strongly connected components in the graph of Figure 9.86. B A D
BREAK-EVEN POINT Break-Even Point is the level of sales required to reach a position of no profit, no loss. At Break-Even Point, the contribution is just sufficient to cover the fixed cost. The...
(a) Write the chemical reactions whose equilibrium constants are Kb and Ka for imidazole and imidazole hydrochloride, respectively.
Are central banks in other nations moving toward more or less independence? Why?
Determine the angular momentum, HP of each of the two particles about point P. use a scalar solution. 5 m 15 m/s 4 m 2 kg 1.5 m 0 4 m 30 IB 1.5 kg 10 m/s ni
You are the person responsible for the accounts payable ledger of Cameron Ltd. You are concerned that the statement of account for the month ending 30 June 2025 received from Deveson Ltd does not...
A profitable company making earthmoving equipment is considering an investment of $100,000 on equipment that will have 5-year useful life and a $20,000 salvage value . If money is worth 10%, which...
nx 1. A wave given by equation y = 1mm sin -5nt is produced in a string 100m long of mass 1 kg. 30 2. 3. What is the tension (in N) in string? x is in m & t in sec. You are trying to construct a...
Marshall Company had actual sales of $600,000 when break-even sales were $420,000. What is the margin of safety ratio? (a) 25%. (b) 30%. (c) 3313%. (d) 45%.
The mathematical equation for computing required sales to obtain target net income is: Required sales = (a) Variable costs + Target net income. (b) Variable costs + Fixed costs + Target net income....
Describe the contingency leadership theory variables.
Users at Agate require a report of unpaid campaigns. Which of the following aspects of the report represents analysis, logical design and physical design? The size of the paper and the position of...
How is the amount reported as goodwill determined under the acquisition method?
What does it mean to say that an object-oriented system is highly modular?
State the conditions for recognition of a liability.
What happens to the break-even point when fixed overheads increase?
Lang Company has not yet prepared a formal statement of cash flows for 2010. Following are comparative balance sheets as of December 31, 2010 and 2009, and a statement of income and retained earnings...
Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years. If they can earn 8 percent annually on their funds, how much do they need to save annually?
Beta Watches completed the following selected transactions during 2011 and 2012: 2011 Dec 31 Estimated that uncollectible account expense for the year was 3% of credit sales of $440,000 and recorded...
Sleepy Recliner Chairs completed the following selected transactions: 2011 Jul 1 Sold inventory to Go Mart, receiving a $37,000, nine-month, 8% note. Ignore cost of goods sold. Oct 31 Recorded...
Christie Realty loaned money and received the following notes during 2012. Requirements For each note, compute interest using a 360-day year. Explanations are not required. 1. Determine the due date...
What resources or financial counseling services are available to help navigate the costs and potential financial burdens associated with cancer treatment and how can you strategically plan and manage...
Utilize the UoPeople library to find 2-3 sources for your own research paper. You will then create a 2-3 paragraph Literature Review based on your own analysis and synthesis of those sources.
In your investment portfolio, you have allocated $20,000 to a single stockXYZ Innovations. Assume a risk-free rate of 3%. XYZ Innovations is expected to yield a return of 15% with a volatility of...

Margin of safety is computed as: (a) Actual sales Break-even sales. (b) Contribution margin Fixed

Question:

Step by Step Answer:

Financial And Managerial Accounting

Students also viewed these Business questions