Question: Berkut company's variable cost per unit was $25 and a total fixed cost was $300,000. Assuming the company sells its product for $50 per unit,

Berkut company's variable cost per unit was $25 and a total fixed cost was $300,000. Assuming the company sells its product for $50 per unit, what is its margin of safety if sales total $800,000 a. 16,000 units b. 25% c. 12000 units d. 1000 units

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

( 1 point ) A company sells each unit of its product for $ 9 0 . Its variable cost per unit is $ 5 0 and the total fixed cost is $ 2 0 0 0 0 0 . If the compary sells 2 9 0 0 0 items, what will be the...

A company sells each unit of its product for $80. Its variable cost per unit is $40 and the total fixed cost is $300000. If the company sells 22000 items, what will be the revenue?

A company sells each unit of its product for $ 1 1 5 . Its variable cost per unit is $ 5 5 and the total fixed cost is $ 2 5 0 0 0 0 . If the company sells 2 2 0 0 0 items, what will be the revenue?...

Need help with the following questions: Strand has a break-even point of 120,000 Units.If the firm's sole product sells for $40 and fixed costs total $480,000, the variable cost per unit must be...

Please show clearly answer choice (MCQs) and your calculations Please use EXCEL (if possible) for your answers 306 SU 6: Managerial Accounting 6.2 Cost Behavior and Relevant Range the 4. An assembly...

3 Production Rules Exercise prices $ 3.00 $ 2.50 $ 1.50 4 S variable cost per unit 1.75 variable cots/units 6 total fixed costs $5,000.00 7 planned production 10000 units contribution margin 8 9...

What is the total cost to Salalah Company for 5000 units, if Variable cost per unit is OMR 5 and Total Fixed cost is, OMR 10000? a. OMR50000 b. None of the options O c. OMR30000 O d. OMR35000 If...

SnoBoards R Us produces a single product. Variable cost per unit is $25, and fixed costs are $95,000 per year. If the firm sells 5,000 units per year, what price should be charged for each unit to...

8 (14 Marks) Domco makes and sells a single product, Product P. It is currently producing 112,000 units per month, and is operating at 80% of full capacity. Total monthly costs at the current level...

Steves Sub Stop (Steves) is considering investing in toaster ovens for each of its 120 stores located in the southwestern United States. The high capacity conveyor toaster ovens, manufactured by...

Some companies are run by engineers and other technical specialists. For example, a manager in a division that is now part of ArvinMeritor, an automotive parts supplier, once said that thered be...

The probability distribution of the discrete random variable X is f(x) = 3 x 1 4 x 3 4 3x , x = 0, 1, 2, 3. Find the mean of X.

For a homogenous shopping product, a marketing manager should

2. The book encourages readers to pay attention to what is happening around them, anticipate change, and look at the opportunities that exist outside their comfort zones. How does this reflect on...

2. Lets assume your company has spent a large sum of money to bring in Lance Armstrong. He makes an enthusiastic presentation and receives a standing ovation. Define what steps your company would...

2. Lets assume you are a member of a productive team that has received considerable praise from top management. You learn that one member of the team has met with the manager who organized the team...