Question













Ambrosia Foods produces a gourmet condiment that sells for $24 per unit. Variable cost is $6 per unit, and fixed costs are $8
0 0
Add a comment Improve this question Transcribed image text
Answer #1

first let us know the break even units:

fixed costs / (sale price per unit - variable cost per unit)

=>$8,000 / (24-6)

=>444 units.

margin of safety = units sold - break even units

=> 1500 units - 444 units

=>1,056 units.

Add a comment
Know the answer?
Add Answer to:
Ambrosia Foods produces a gourmet condiment that sells for $24 per unit. Variable cost is $6...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • question 13 solve Delectable Foods produces a gourmet condiment that sells for $20 per unit. Variable...

    question 13 solve Delectable Foods produces a gourmet condiment that sells for $20 per unit. Variable cost is $8 per unit, and fixed costs are $5,000 per month. If Delectable expects to sell 1,500 units, compute the margin of safety in dollars. (Round any intermediate calculations to the nearest whole unit, and your final answer to the nearest dollar.) A. $21,660 B. $8,664 C. $5,000 OD. $1,083

  • Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.81...

    Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.81 Variable cost per cake Ingredients 2.21 Direct labor 1.19 Overhead (box, etc.) 0.27 Fixed cost per month $ 4,765.80 Required: 1. Determine Cove’s break-even point in units and sales dollars. (Round your Break-Even Units answer to the nearest whole number. Round your other intermediate calculations and sales dollars answer to 2 decimal places.)     2. Determine the bakery’s margin of safety if it currently...

  • Dana's Ribbon World makes award rosettes. Following is information about the company: Variable cost per rosette...

    Dana's Ribbon World makes award rosettes. Following is information about the company: Variable cost per rosette Sales price per rosette Total fixed costs per month $1.60 4.00 200.00 Required 1. Suppose Dana's would like to generate a profit of $920. Determine how many rosettes it must sell to achieve this target profit. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) et Units 2. If Dana's sells 870 rosettes, compute its margin of...

  • Cove's Cakes is a local bakery. Price and cost information follows: $ 14.11 Price per cake...

    Cove's Cakes is a local bakery. Price and cost information follows: $ 14.11 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.34 1.18 0.23 $4,765.60 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety if it currently sells 500 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $2,700 in profit. Required 1 Required 2 Required...

  • Darwin Company sells glass vases at a wholesale price of $ 5.00 per unit. The variable...

    Darwin Company sells glass vases at a wholesale price of $ 5.00 per unit. The variable cost to manufacture is $ 2.00 per unit. The monthly fixed costs are $ 8 comma 000. Its current sales are 25 comma 000 units per month. If the company wants to increase its operating income by 30​%, how many additional units must it​ sell? (Round any intermediate calculations to two decimal places and your final answer to the nearest whole​ number.)

  • Vernon Company makes a product that sells for $33 per unit. The company pays $24 per...

    Vernon Company makes a product that sells for $33 per unit. The company pays $24 per unit for the variable costs of the product and incurs annual fixed costs of $72,900. Vernon expects to sell 22,300 units of product. Required: Determine Vernon’s margin of safety expressed as a percentage. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45))

  • Cove's Cakes is a local bakery. Price and cost information follows: $ 15.01 Price per cake...

    Cove's Cakes is a local bakery. Price and cost information follows: $ 15.01 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.21 1.09 0.18 $4.150.80 Required: 1. Determine Cove's break-even point in units and sales dollars. (Round your Break-Even Units answer to the nearest whole number. Round your other intermediate calculations and sales dollars answer to 2 decimal places.) Cakes Break-Even Units Break-Even Sales Dollars 2. Determine the bakery's margin of...

  • Cove's Cakes is a local bakery. Price and cost information follows: $ 13.31 Price per cake...

    Cove's Cakes is a local bakery. Price and cost information follows: $ 13.31 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.33 1.12 0.27 $4,315.50 Required: 1. Determine Cove's break-even point in units and sales dollars. (Round your Break-Even Units answer to the nearest whole number. Round your other intermediate calculations and sales dollars answer to 2 decimal places.) Cakes Break-Even Units Break-Even Sales Dollars 2. Determine the bakery's margin of...

  • selling price per unit 24 Variable expense per unit 15 fixed expense per month 7470 unit...

    selling price per unit 24 Variable expense per unit 15 fixed expense per month 7470 unit sales per month 980 1. What is the company’s margin of safety? (Do not round intermediate calculations.) 2. What is the company’s margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)

  • Cove's Cakes is a local bakery. Price and cost information follows: 13.81 Price per cake Variable...

    Cove's Cakes is a local bakery. Price and cost information follows: 13.81 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.34 0.24 $3,740.70 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety if it currently sells 460 cakes per month 3. Determine the number of cakes that Cove must sell to generate $2,000 in profit. Complete this question by entering your answers...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT