Question

The Dean Company has sales of $118,000, and the break-even point in sales dollars of $75,520. Determine the companys margin
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Answer #1

We have actual sales = $118000 - and break- even sales = $ 75,520 Margin of Safety %) = = Actual Sales - Breake even sales lo

2. Here Sale - VC Contribution (- FC EBIT $259369 135,269 124,100 51100 73000 Tom Companys operating lencsege - Contaibution

Ans 4

c. $14,057

Explanation:
Using high low method we have

Highest cost = $36,000 for 17,600 hours in the month of February.

Lowest Cost = $26400 for 9,900 hours in the month of January.

$26,400 = 9,900 V + F _(1)
$36,000 = 17,600 V + F _(2)
Eq:(2)-(1)
$9,600 = 7,700 V
$1.2467= V
9,900V = $12,343
$26,400 - $12,343 = $14,057
Fixed Cost = $14,057

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