Assume the following Total sales = $131,000 The contribution margin ratio = 40% Total fixed expenses =

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

Question:

Assume the following

Total sales = $131,000

The contribution margin ratio = 40%

Total fixed expenses = $45,000.

What is the margin of safety ?

Related Book For answer-question

Managerial Accounting

ISBN: 9781260247787

17th Edition

Authors: Ray Garrison, Eric Noreen, Peter Brewer

See More Books

Posted Date: Apr 11, 2023 12:29 AM

See More Questions

We have looked at the breakeven calculations for a single-product firm. However, most firms make more than one product - or service. Conceptually, multiple-product breakeven is the same as single...
1. ABM's breakeven point is 4,000 units at a sales price of P50 per unit, variable cost of P30 per unit, and total fixed costs of P80,000. If ABM sells 500 additional units, by how much will profit...
The financial statements of Zoro Industries for the year ended Dec. 31, 2021, are given below. Zoro Industries Income Statement For the year Ended Dec. 31, 2021 Sales Revenue P160,000.00 Less: Cost...
A Table is in first normal form if there are no repeating groups of data in any column. (True/False)
An automotive company is considering two types of batteries for its automobile. Sample information on the life of the battery is being used. Twenty batteries of type A and twenty batteries of type B...
Write a script for two speakers arguing about globalization and its effects. Give each speaker a name, and then write a script for a debate between the two. The debate should be no longer than two...
Many extraction systems are partially miscible at high concentrations of solute but close to immiscible at low solute concentrations. At relatively low solute concentrations both McCabe-Thiele and...
Janitorial Products, Inc., manufactures two products, brooms and mops, which are sold in two territories designated by the company as East Territory and West Territory. The following income statement...
I need help with the constuction of my results for my research, to include the statistical results/ descriptive statistics following the correlations, I just dont understand how to do in APA. with...
The implementations of the methods addAll, removeAll, retainAll, toArray(), and toArray(T[]) are omitted in the MyList interface. Implement these methods. Test your new MyList class using the code at...
1. Determine and confirm purchasing requirements for at least six (6) of the goods listed in the knowledge evidence. 2.Make purchase arrangements for the goods to meet different: End product...
How does the "quest for quality" affect logistical operations? Does the concept of total quality have relevancy when applied to logistics?
You are the auditor of JHG Ltd, a manufacturing company. This company maintains records of all stock issued and received, valued at standard cost. The computerised accounting system identifies the...
Show that if the moment $\overline{u^{n} v^{m}}$, if it exists, can be found from the joint characteristic function $\mathbf{M}\left(\omega_{U}, \omega_{V} ight)$ by the formula \[...
Compare and contrast the role of the forecast support system, forecast technique, and forecast process.
Briefly describe two tests of controls you are likely to perform during the conduct of an information systems audit.
Solve. 4x-3-9 - 2x = 0 9-2x
A number of years ago the United Food and Commercial Workers Union organized 800 workers of the 1035 employees at one of the Wilson Brothers food operations in Toronto, Ontario. The employees include...
Why is using sales dollars as an allocation base usually a poor choice for allocating fixed costs to operating departments?
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 30,000 Rets per year. Costs associated with this level of production and...
Define the following terms: differential cost, sunk cost, and opportunity cost.
Search popular business magazines (Business Week, Fortune, Forbes) for an article that describes a dysfunctional behavior resulting from a poorly designed manager ial reporting and performance...
On the following Web sites you will find several online demonstrations for the SAP and Oracle ERP systems. Visit these Web sites ^nd explore their content by doing the following: a. The SAP Web site...
Shauna Washington started a business to sell art supplies and related curricula to home school families. The business grew quickly, with sales doubling three times during a five-year period. At that...

Assume the following Total sales = $131,000 The contribution margin ratio = 40% Total fixed expenses =

Question:

Expert Answer:

The margin of safety is a financial metric that indicates how much sales can decrease before a compa... View the full answer

Managerial Accounting

Students also viewed these accounting questions