Answer: $ 22,000
Explanation
Margin of safety (dollars) = Actual sales - Break-even sales
= (5,000 x $10) - (2,800 x $10)
= $50,000 - $28,000
= $22,000
Z Instructions Question 17 1 pts Baylee Company expected to sell 5000 units. Their break-even is...
Question 17 1 pts Baylee Company expected to sell 5000 units. Their break-even is 2800 units. If their selling price is $10 per unit, what is their margin of safety in dollars? $50,000 $28,000 $22,000 $78,000 Question 16 1 pts Keaubie Company has the following: Total Sales: $500,000; Contribution Margin Ratio: 20%; Fixed Costs: $80,000; What is the amount of Keaubie Company's net income or net loss for the period? $100,000 net loss $100,000 net income $20,000 net loss $20,000...
Break-Even Point in Units
Chillmax Company plans to sell 3,500 pairs of shoes at $60
each in the coming year. Variable cost is 35% of the sales price;
contribution margin is 65% of the sales price. Total fixed cost
equals $78,000 (includes fixed factory overhead and fixed selling
and administrative expense).
Required:
1. Calculate the sales revenue that Chillmax must make to
break even by using the break-even point in sales equation. $
2. Prepare a contribution margin income statement...
Information for Question 17 - 20: The yearly break-even point in sales for Rice Company is $360,000, contribution margin per unit is $12.00 and the company's contribution margin ratio is 20%. Its income tax rate is 40%. What is the fixed cost of Rice Company? Select one: O A. $6,000.00 per month. O B. $72,000.00 per year. C . $72,000.00 per month. o D. $288,000.00 per year. O Information for Question 17 - 20: The yearly break-even point in sales...
break even point and balance sheet
Freak-Even Point in Units Instructions Instructions Head-First Company plans to sell 5,200 bicycle helmets at $80 each in the coming year. Unit variable cost is $47 (includes direct materials, direct labor, variable factory overhead, and variable selling expense) Total fixed cost equals $55,440 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the break-even nuraber of helmets. 2. Check your answer by preparing a contribution margin income statement based on...
Breakeven Analysis in Units and Dollars SES. How many units must Queens Company sell to break even if the selling price per unit is $9, variable costs are $5 per unit, and fixed costs are $6,000? What is the break- even point in total dollars of sales? 04
Calculate the break even point in dollars and units for a product that has: Expected Unit Sales at launch:10,000 units Selling Price/Unit: $9.99 Fixed Costs: $50,000 Variable Cost/Unit: $2.50
Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 410 Sales Price per Unit $515 Variable Cost per Unit $380 Contribution Margin per Unit $135 Fixed Costs $2,700 Break-Even (in units) Contribution Margin Ratio 26% Break-Even (in dollars) $10,300 What would Marshall's target margin of safety point be in units and dollars if they required a $13,500 margin of safety? 20 Target margin of safety units
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