Question

Candel Gym has sales of $300,000 this month, contribution margin of $90,000, monthly fixed cost of $54,000 and profit of $36,000. What is the firm’s current margin of safety ratio to sales [ie., safety margin ratio]?

Answer #1

part 1
Candle Co. has sales of $200,000 this month, contribution
margin of $100,000, monthly fixed cost of $80,000 and profit of
$20,000. What is the firm’s current breakeven volume in dollars?
(rounded)
Select one:
a. All listed choices are incorrect.
b. $160,000.
c. $180,000.
d. $140,000.
part 2
Candle Co. has sales of $200,000 this month, contribution
margin of $100,000, monthly fixed cost of $80,000 and profit of
$20,000. What is the firm’s current breakeven ratio to sales?
(rounded)...

A company has sales of $250000, contribution margin of $75000
and profit of $45000, with total fixed expenses amount to $30000.
Variable expenses are 70% of sales.
1. What is its operating leverage?
2.What is its ratio of break-even sales to his current
sales?
3. What is its safety-margin ratio to the target sales?

Rastacan Enterprises distributes two products: Model X300 and
Model Z900. Monthly sales and the contribution margin ratios for
the two products follow:
Product : Model X300 Model Z900
Total
Sales: $700,000 $300,000 $1,000,000
Contribution Margin Ratio 60% 70% ?
The company's fixed expenses total $598,500 per month.
1. Prepare a contribution-format income statement for the company
as a whole.
2. Compute the break-even point for the company based on the
current...

In CVP analysis, the unit contribution margin is:
Sales price per unit less cost of goods sold per unit
Sales price per unit less FC per unit
Sales price per unit less total VC per unit
Same as the CM
Maroon Company’s CM ratio of 24%. Total FC are
$84,000. What is Maroon’s B/E point in sales dollars?
$20,160
$110,536
$240,000
$350,000
If a firm’s forecasted sales are $250,000 and its B/E sales are
$190,000, the margin of safety in dollars is:...

Product
Wham
Blam
sales
300,000
200,000
less variable cost
180,000
130,000
contribution margin
120,000
70,000
less Fixed cost
90,000
60,000
Income (loss) from operations
30,000
10,000
Management is considering the discontinuance of the manufacture
and sale of Blam at the beginning of the current year. The
discontinuance would have no effect on the total fixed costs and
expenses or on the sales of Wham
What is the amount of change in net income for the current year
that will result...

MENTO COMPANY distributes a single product. The company's sales
and expenses for last month follow: The company sales 15,000 units
last month.
Sales ....................... (15,000 units)
....................$ $450,000
Variable expenses
.............................................
180,000
Contribution margin
............................................. $ 270,000
Fixed expenses
................................................... 216,000
Net operating income ...........................................
. $ 54,000
REQUIRED
1. What is the monthly BREAK EVEN POINT in units and dollar
sales?
2. What is the Contribution Margin at the Break Even Point ?
3. How many units...

Liu Sales has two store locations. Sanford has fixed costs of
$144,000 per month and a contribution margin ratio of 35%. Orlando
has fixed costs of $300,000 per month and a contribution margin
ratio of 65%. At what sales volume would the two stores have equal
profits or losses?
A. $520,000.
B. $444,000
C. $1,120,000
D. N/A

Gayne Corporation's contribution margin ratio is 16% and its
fixed monthly expenses are $45,500. If the company's sales for a
month are $302,000, what is the best estimate of the company's net
operating income? Assume that the fixed monthly expenses do not
change.
Multiple Choice
$2,820
$256,500
$208,180
$48,320

E6-10 (Algo) Calculating Contribution Margin, Contribution
Margin Ratio, Margin of Safety [LO 6-2, 6-3]
Last month, Laredo Company sold 540 units for $70 each. During
the month, fixed costs were $4,704 and variable costs were $42 per
unit.
Required:
1. Determine the unit contribution margin and
contribution margin ratio.
2. Calculate the break-even point in units and
sales dollars.
3. Compute Laredo’s margin of safety in units
and as a percentage of sales.
Complete
this question by entering your answers...

Metal Industries has monthly fixed costs totaling $90,000 and
variable costs of $5 per unit. Each unit of product is sold for
$20.
Assume the company expects to sell 11,850 units of product this
coming month. What is the margin of safety in units?
Group of answer choices
8,850
6,600
5,850
7,350
Tech Products, Inc. has monthly fixed costs totaling $90,000 and
variable costs of $5 per unit. Each unit of product is sold for
$20.
How many units must...

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