What is the margin of safety in dollars and as a ratio
Course:- Accounting Basics
Reference No.:- EM132283995

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Question - Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016:

Sales 2,500 units

Sales price $40 per unit

Variable costs $24 per unit

Fixed costs $19,500

Instructions -

(a) What is the contribution margin ratio?

(b) What is the break-even point in dollars?

(c) What is the margin of safety in dollars and as a ratio?

(d) If the company wishes to increase its total dollar contribution margin by 30% in 2017, by how much will it need to increase its sales if all other factors remain constant?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
identify the problems that appear to exist in ferguson and son manf company budgetary control system and explain how the problem are lightly to reduce the effectiveness of t
The cost incurred in storage is 5% of purchase price per unit and 4% are insurance charges and 2% are expenses on misc. heads related to holding the compound. Annual usage i
Leigh of New York sells its products to customers in the United States and the United Kingdom. On December 16, 2013, Leigh sold merchandise on credit to Bronson Ltd. of London
Analyze and discuss the costs and benefits, if there are any, of corporations taking social responsibilities and making such disclosure in the context of efficiency and oppo
Donor A gave the NFPO a cash gift of $ 50,000 in June 2012, telling the NFPO the gift could not be used until 2013. Identify the net asset classification in the journal entr
If direct labor for the month is $30,000, overhead is applied based on direct labor, annual overhead is estimated to be $500,000, and annual direct labor is estimated to be
Stoolco's management has asked you to advise them on the types of marketing activities they can conduct within these countries without creating a taxable nexus. For purposes o
Adam Ltd acquires all the share capital of Luke Ltd for 5290.000. Provide the workings of necessary worksheet consolidation entries (no marks given) and complete the worksheet