Calculate in sales units the margin of safety for ipm

Assignment Help Managerial Accounting
Reference no: EM132669570

International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows:

                                                 Alpha                    Beta            Gamma                   Total
Selling price per unit            $250                    $400           $1 500
Variable cost per unit            $80                       $200             $800
Expected unit sales (annual) 12,000                    6,000           2,000          20,000
Sales mix                         50 percent              40 percent     10 percent    100 percent

Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levels of sales.

Required:

Problem a) Calculate the weighted average unit contribution margin, assuming a constant sales mix.

Problem b) How many units of each printer must be sold to break even?

Problem c) i) Explain what is margin of safety

ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000units?

Reference no: EM132669570

Questions Cloud

Determine the amount of their earned income credit : In 2019, they earn wages of $34,000 and no other income. Determine the amount of their earned income credit for 2019
Find what is unit cost of the goods transferred to toretoom : Assuming that the 25 units were only defective, What is the unit cost of the goods transferred to toretoom if the rework costs are charged to the specific job?
What is Alison incremental research activities credit : Alison incurs the following research expenditures. If the taxpayer's base amount is $50,000, what is Alison's incremental research activities credit
How might the given cadre lead clinical innovation : How might a large cadre of nursing practice and research scholars' impact change? How might the work of this cadre translate evidence to change practice?
Calculate in sales units the margin of safety for ipm : Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000units? How many units of each printer must be sold to break even?
Determine the amount of Lincoln work opportunity credit : Each employee works in excess of 600 hours and is paid wages of $7,500 during the year. Determine the amount of Lincoln's work opportunity credit
How find for the cost of direct materials used for the year : Compute for the cost of direct materials used for the year ended December 31, 2019. Beginning work in process inventory was 75% of the work in process.
Compute Emily credit for rehabilitation expenditures : Emily spent $135,000 to rehabilitate a certified historic building (adjusted basis of $90,000). Compute Emily credit for rehabilitation expenditures
Make material purchases budget schedule for months : Make material purchases budget schedule for each of the first three months (July -September), including the total purchases per month.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd