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S Weygandt, Managerial Accounting, 8e CALCULATOR Exercise 5-16 a,c (Video) Sheridan Company estimates that variable costs will be 65.00% of sales, and fixed costs will total $434,000. The selling price of the product is $4. Compute the break-even point in (1) units and (2) dollars. (1) Break-even sales units (2) Break-even sales LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Assuming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. (1) Margin of safety $ (2) Margin of safety ratio % Click if you would like to Show Work for this question: Qen Show Work LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Question Attempts: 0 of 5 used SAVE FOR

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XI - Book1 - Microsoft Excel File Home Insert Page Layout Formulas Data Review View O x AutoSum - Calibri 11 - A Wrap Text General H Fill * Cut E Copy Paste Format Painter Clipboard BI U А Merge & Center % +.0 .00 .00 0 Insert Delete Format Clear Conditional Format Cell Formatting as Table Styles Styles Sort & Find & Filter Select Editing Font Alignment Number Cells 010 А B С D E F G H 1 J K L M N O P Q R S T 1 2 3 4 when sales is $20,00,000 5 Sales Price $ Variable cost (65%) $ Contribution $ 4.00 2.60 1.40 6 7 Margin of safety = Actual Sales - Breakeven sales = $20,00,000 - $12,40,000 = $7,60,000 8 9 10 Break even sales unit = Fixed Cost / Contribution Per unit = $434000 / $1.4 = 310000 Units * 100 O 11 Margin of Safety % = Margin of Safety Actual sales $760000 $2000000 38% * 100 12 13 14 15 16 17 Breakeven point in $ = Breakeven Point in unit * Sales Price per unit 310000 Units * $4 per unit $ 12,40,000.00 18 19 20 21 22 23 24 25 Sheet1 Sheet2 Sheet3 K Ready 100% - + 1 Type here to search O e PELE x ra * ENG 12:58 24-09-2020 6

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