QUESTION 7 The following monthly data are available for Seasons Company which produces only one product:...

Question

Question

business accounting

Answer 1

Answer #1

Dear student thankyou for using Chegg.

Please find the answer below.

Statement showing computation:

Break even point= Fixed cost/contribution margin per unit

Contribution margin= selling price- variable cost per unit

Contribution per unit= 42-14= $28

Break even point= 70000/28= 2500 units

Margin of safety= total sales- break even units

Margin of safety= 3000-2500= 500

Margin of safety in amount= 500*42= 21000

So correct answer is $21000

Answer 2

Similar Homework Help Questions

The following monthly data are available for Crane Company which produces only one product: Selling price...

The following monthly data are available for Crane Company which produces only one product: Selling price per unit, $44; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 7000 units. How much is the margin of safety for the company for June?
Question 1 Question 1 of 10 2 points The following monthly data are available for Lumberyard...

Question 1 Question 1 of 10 2 points The following monthly data are available for Lumberyard Company, which produces only one product: Selling price per unit, 542: Unit variable expenses, $14: Total fixed expenses, 542,000; Actual sales for the month of June, 3,000 units. How much is the margin of safety for the company for June? $42.000 $63,000 $84,000 $1,500 MacBook Pro
Multiple Choice Question 140 The following monthly data are available for Crane Company, which produces only...

Multiple Choice Question 140 The following monthly data are available for Crane Company, which produces only one product: Selling price per unit, $38; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units. How much is the margin of safety for the company for June? $84000 $9500 $1750 $42000

Multiple Choice Question 140 The following monthly data are available for Vaughn Manufacturing, which produces only...

Multiple Choice Question 140 The following monthly data are available for Vaughn Manufacturing, which produces only one product: Selling price per unit, $44; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 6000 units. How much is the margin of safety for the company for June? $202400 O $1400 O $84000 O $42000
Multiple Choice Question 140 The following monthly data are available for Coronado Industries which produces only o...

Multiple Choice Question 140 The following monthly data are available for Coronado Industries which produces only one product: Selling price per unit, 544; Unit variable expenses, $14; Total foed expenses, $42000; Act Sales for the month of June, 5000 units. How much is the margin of safety for the company for June? $1400 34000 43000 $158400
The following monthly data are available for the Winfast Company and its only product: Unit selling...

The following monthly data are available for the Winfast Company and its only product: Unit selling price $36 Unit variable expenses $28 Total fixed expenses $51,000 Actual sales of the month of March 7,000 The margin of safety for the company during March was:

#12 The following monthly data are available for a company and its only product Unit selling...

#12 The following monthly data are available for a company and its only product Unit selling price $38 Unit variable expenses $25 Total fixed expenses $39,000 Actual monthly sales 8,000 units What was the margin of safety in dollars for the company during the month? a. $180,500 b. $118,000 c.$119,800 d. $190,000 e. None of the above
The following monthly data was available for Purple Company Selling price $100 Unit variable expenses $75...

The following monthly data was available for Purple Company Selling price $100 Unit variable expenses $75 Fixed expenses $75,000 Actual Sales 18,000 units What was the margin of safety in units? 20,000 15,000 3,000 18,000
Bonita Corporation produces only one product. Monthly data includes selling price per unit. 546 unit variable...

Bonita Corporation produces only one product. Monthly data includes selling price per unit. 546 unit variable expenses $18 total foed expenses. 58904, actual sales for the month of June, 4240 units. What is the margin of safety 589040 5147552 $58512 O $1272 Attems of used to MacBook Air BE NO 6 7 B 9 à E W R т Y U ta А J S D F G K H CA ? N х с B N M < COM...

Multiple Choice Question 98 The following information is available for Sheridan Company: Sales Cost of goods...

Multiple Choice Question 98 The following information is available for Sheridan Company: Sales Cost of goods sold $500000 320000 Total fixed expenses Total variable expenses $150000 260000 A CVP income statement would report contribution margin of $350000. gross profit of $240000. contribution margin of $240000. gross profit of $180000. Click if you would like to Show Work for this question: Open Show Work Multiple Choice Question 142 The following monthly data are available for Waterway Industries which produces only one...