? ? Ever Markets prepares marketing plans for growing businesses. For 2017, budgeted revenues are $800,000 based
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Ever Markets prepares marketing plans for growing businesses. For 2017, budgeted revenues are $800,000 based on 400 marketing plans at an average rate per plan of $2,000. The company would like to achieve a margin of safety percentage of at least 35%. The company 's current fixed costs are $150,000 and variable costs average $1,500 per marketing plan. Read the requirements Now, determine the formula used to calculate the margin of safety in units, then calculate the result. Budgeted sales quantity Breakeven quantity 400 + 300 Requirement 2. Which of the following changes would help Ever Markets achieve its desired margin of safety? a. Average revenue per customer increases to $3,500; b. Planned number of marketing plans prepared increases by 6%; c. Ever Markets purchases new software that results in a 4% increase to fixed costs but reduces variable costs by 8% per marketing plan. (Round all margin of safety percentages to the nearest whole percent, X.X%. Round breakeven units up to the next whole unit.) First, calculate the current margin of safety percentage. Margin of safety in dollars 200,000 $ Budgeted revenues $ a. The average revenue per customer increases to $3,500. Ever Markets' breakeven number of units is now This change will = 800,000 Margin of safety in units 100 = Margin of safety percentage 25 300 plans and its margin of safety percentage is now help Ever Markets achieve its desired margin of safety of 35%. % 25%. Ever Markets prepares marketing plans for growing businesses. For 2017, budgeted revenues are $800,000 based on 400 marketing plans at an average rate per plan of $2,000. The company would like to achieve a margin of safety percentage of at least 35%. The company 's current fixed costs are $150,000 and variable costs average $1,500 per marketing plan. Read the requirements Now, determine the formula used to calculate the margin of safety in units, then calculate the result. Budgeted sales quantity Breakeven quantity 400 + 300 Requirement 2. Which of the following changes would help Ever Markets achieve its desired margin of safety? a. Average revenue per customer increases to $3,500; b. Planned number of marketing plans prepared increases by 6%; c. Ever Markets purchases new software that results in a 4% increase to fixed costs but reduces variable costs by 8% per marketing plan. (Round all margin of safety percentages to the nearest whole percent, X.X%. Round breakeven units up to the next whole unit.) First, calculate the current margin of safety percentage. Margin of safety in dollars 200,000 $ Budgeted revenues $ a. The average revenue per customer increases to $3,500. Ever Markets' breakeven number of units is now This change will = 800,000 Margin of safety in units 100 = Margin of safety percentage 25 300 plans and its margin of safety percentage is now help Ever Markets achieve its desired margin of safety of 35%. % 25%.
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Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
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