Question: Decker Sofa Company sells sofas for $ 2 , 2 0 0 per sofa. Variable costs per sofa are $ 1 , 0 5 0

Decker Sofa Company sells sofas for $2,200 per sofa. Variable costs per sofa are $1,050
and fixed costs equal $4,209,000. Current unit sales equal 4,000 sofas.
Calculate Decker Sofa Company's margin of safety ratio

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 General Management Questions!

Q:

During the audit of the accounts receivable accounts of Solace Enterprises, a provider of car batteries in the southeastern United States, the auditors have received an abnormally high amount of...

Q:

( 4 points ) Decker Sofa Company sells sofas for $ 2 , 2 0 0 per sofa. Variable costs per sofa are $ 1 , 0 5 0 and fixed costs equal $ 4 , 2 0 9 , 0 0 0 . Current unit sales equal 4 , 0 0 0 sofas....

Q:

QS 18-6 Contribution margin per unit and break-even units LO P2 SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, and variable costs are $36 per unit....

Q:

Questions #14-6, 14-8, 14-9, no other info available 510 Part 5 Capital Structure and Dividend Policy 14-6 Intermediate Problems 6-9 c. Observing that HL has a higher ROE, LL's treasurer is thinking...

Q:

Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $510 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank...

Q:

Unfortunately, project CC never met Primo Caf's margin targets, and the project was canceled. Gianna, Primo's Chief Marketing Officer, and Marco, the Chief Operating Officer, are now arguing over the...

Q:

SBD Phone Company sells its waterproof phone case for $106 per unit. Fixed costs total $242,000, and variable costs are $42 per unit. Compute the units of product that must be sold to earn pretax...

Q:

C D E F . L N 0 P R S T Name: G#: 1 Chapter 5: Applying Excel 2 DATA 4 Unit vales S Selling price per un 6 Variable expenses perunt 7 Fbed expenses 20,000 units Sto per un $45 perunt $240,000 7 9...

Q:

Question 21 2. A pts Which of the following statements are true? I. A manufacturing company treats all its depreciation expense as a period cost. 11. Depreciation expense on equipment that a company...

Q:

Miyamoto Jewelers is considering a special order for 20 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $390 and its unit...

Q:

Tempo Company's fixed budget (based on sales of 16,000 units) folllows. 3,200,000 ok Fixed Budget Sales (16,000 units 'x $200 per unit) Costs Direct materials Direct labor Indirect materials...

Q:

Number the following steps for an ETL in the order in which the steps would be executed. a. Load data warehouse dimensional table b. Extract operational relational database table c. Choose...

Q:

Sizzler's produces charcoal grills in a small manufacturing facility and sells the grills in a competitive market. The following table presents the company's production function: Use the blue points...

Q:

jordan is an educator. he spent a total $ 3 0 0 on classrrom supplies. he also reported non - taxable US treasury series I savings bonds on form 8 8 1 5 in the amount of $ 2 5 0 , what is the...

Q:

Discuss several ways ( at least four ways ) to improve the requirement process and thus, a project team can avoid a situation where too many changes to the project requirements occur at the later...

Q:

2. As a class, discuss the ethical principles refl ected in the communication behaviors discussed in this chapter. What ethical principles underlie confi rming communication and disconfi rming...

Q:

4. When is it appropriate to show grace toward others?

Q:

1. What kinds of communication foster defensive and supportive communication climates?