Question

Sales price $6.53 per unit Variable costs $2.31 per unit Fixed Costs $9,822 Budgeted number of...

Sales price $6.53 per unit
Variable costs $2.31 per unit
Fixed Costs $9,822

Budgeted number of units 5,458

What is margin of safety in units?
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Margin of safety in units = Budgeted number of units - break even units

Break even units = Fixed cost/Contribution margin per unit

Contribution margin per unit = Unit selling price - Variable cost per unit = $6.53-$2.31 = $4.22

Fixed cost = $9822

Break even units = Fixed cost/Contribution margin per unit = $9822/$4.22 = 2327 units(Rounded to nearest whole figure)

So,

  • Margin of safety in units = Budgeted number of units - Break even units = 5458 units - 2327 units = 3131 units
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Steven Company has fixed costs of $289,518. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $289,518. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $848 $318 $530 Y 645 345 300 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Unit sales 20,000 units Selling price per unit $60 per unit Variable expenses per unit $45...
Unit sales 20,000 units Selling price per unit $60 per unit Variable expenses per unit $45 per unit Fixed expenses $240,000 CVP Relationships Compute the CM ratio Selling price per unit Variable expenses per unit = Contribution margin per unit = CM ratio = Compute the break-even Break-even in unit sales= Break-even in dollar sales= Compute the margin of safety Margin of safety in dollars= Margin of safety percentage=
Steven Company has fixed costs of $186,032. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $186,032. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $1,344 $504 $840 Y 538 288 250 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Steven Company has fixed costs of $430,652. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $430,652. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $1,280 $480 $800 Y 667 357 310 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Steven Company has fixed costs of $195,168. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $195,168. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $1,408 $528 $880 Y 430 230 200 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Mark is given the following data: Sales Quantity: 11,600 Fixed Costs: 8,401,000 Unit Sales Price: 4,300...
Mark is given the following data: Sales Quantity: 11,600 Fixed Costs: 8,401,000 Unit Sales Price: 4,300 Unit Variable Cost: 2,050 What is the Margin of Safety (MOS) in units?
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (31,000 units) $ 248,000 $ 8.00 Variable expenses 155,000 5.00 Contribution margin 93,000 $ 3.00 Fixed expenses 42,000 Net operating income $ 51,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 10%? 2. What...
Heyden Company has fixed costs of $705,600. The unit selling price, variable cost per unit, and...
Heyden Company has fixed costs of $705,600. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $700 $460 $240 ZZ 380 260 120 The sales mix for Products QQ and ZZ is 20% and 80%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product...
Sales Price: $50.00 per unit Variable Costs: $20.00 per unit Total Fixed Costs: $90,000 What is...
Sales Price: $50.00 per unit Variable Costs: $20.00 per unit Total Fixed Costs: $90,000 What is the break-even point in sales dollars?
Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...
Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (42,000 units) $ 294,000 $ 7.00 Variable expenses 168,000 4.00 Contribution margin 126,000 $ 3.00 Fixed expenses 46,000 Net operating income $ 80,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 14%? 2. What...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT