Question: Delta Beverages Item Value Sales price per unit $10.00 Variable cost per unit $6.00 Fixed manufacturing cost $4,000 total Fixed selling and administrative cost $1,000

  1. Delta Beverages

Item

Value

Sales price per unit

$10.00

Variable cost per unit

$6.00

Fixed manufacturing cost

$4,000 total

Fixed selling and administrative cost

$1,000 total

  1. Delta Beverages planned to produce and sell 1,500 units. Actual production and sales amounted to 1,700 units. Required:
    1. Calculate the margin of safety in units.
    2. Prepare a master budget income statement.

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!

Q:

31. Will rate As a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work. As part of this task, youve been asked to do some what-if...

Q:

(8 marks) (a) Sales Budget for the year ending Product Units sold unit selling price Total sales revenue Table Chair Total Sales for the period 7 marks (b) Production Budget for the year ending:...

Q:

A B D E F G H 3 Milestone Two - Contribution Margin Analysis 5 COLLARS LEASHES HARNESSES B Sales Price per Unit 9 Variable Cost per Unit 11 Contribution Margin 12 14 15 16 17 18 19 20Milestone One -...

Q:

A B D E F G H 3 Milestone Two - Contribution Margin Analysis 5 COLLARS LEASHES HARNESSES B Sales Price per Unit 9 Variable Cost per Unit 11 Contribution Margin 12 14 15 16 17 18 19 20Milestone One -...

Q:

Break-even point Selangor Pottery Bhd makes flower pots pots in Kinta Valley. The following are the budget for the next financial year 2020: Selling price per unit RM18.00 Variable cost per unit RMII...

Q:

Mastery Problem: Target Income and Margin of Safety Question Content Area Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most...

Q:

Mastery Problem: Target Income and Margin of Safety Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most companies is to make a...

Q:

Blueprint Problem: Target income and margin of safety Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most companies is to make a...

Q:

Stuart Manufacturing Company established the following standard price and cost data: Sales price $ 8.58 per unit Variable manufacturing cost $ 3.90 per unit Fixed manufacturing cost $ 2,280 total...

Q:

Stuart Manufacturing Company established the following standard price and cost data: Sales price $ 8.58 per unit Variable manufacturing cost $ 3.90 per unit Fixed manufacturing cost $ 2,280 total...

Q:

The accounting profit before tax of Robinhood Ltd for the year ended 31 December 2012 amounted to $15,000 after including the following information. The financial year of the company was from 1...

Q:

A child pushes a merry-go-round that has a diameter of 4.00 m and goes from rest to an angular speed of 17.0 rpm in a time of 44.0 s. 1) Calculate the average angular acceleration of the...

Q:

Calculate the following: a.) Bank Discount b.) Proceeds using ordinary interest on a promissory note to a business owner in the amount of $5,000 at 6% annual simple interest from September 1 to...

Q:

Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production...

Q:

Consider three independent cases for the cash flows of Loader Company. For each case, identify from the statement of cash flows how Loader Company generated the cash to acquire new plant assets. Rank...

Q:

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: The company is now in the process of preparing a production budget for the...

Q:

Prepare an Income Statement. The following information is available from the accounting records of Sammy Co. for the year ended December 31, 2004: Selling, general, and administrative expenses...

Q:

Chen Wholesalers Ltd. incurred the following transactions related to current liabilities. 1. Chen's cash register showed the following totals at the end of the day on March 17: pre-tax sales $50,000,...

Q:

Design a minimum-mass symmetric three-bar truss (the area of member 1 and that of member 3 are the same) to support a load P, as was shown in Fig. 2.9. The following notation may be used: Pu = P cos...

Q:

What are some of the things that an organization can do to adopt an inclusive approach to recruiting? LO.1

Q:

There is a lot of discussion about the need for diversity in organizations. What are some of the major benefits inclusive organizations experience? LO.1

Q:

Your research focuses on social exclusion and inclusion. Can you briefly explain those concepts? LO.1