Accounting Chapter 18

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$63,000. $256,000 - $193,000 = $63,000

Firms forecasted sales are $256,000 and break even sales are $193,000. Margin of safety in dollars is:

30%. BE Sales= 21000/.24 = 87500. Margin of safety (%) (125000-87500)/ 125000 = 30%

Fixed cost 21,000 and CMR of 24%. If expected sales are 125,000, what is margin of safety as % of sales?

Expected sales over break-even sales

The margin of safety is the excess of:

295,500. 91450/.31 = 295000

A company's has fixed costs of 91450. Its C.M.R. Is 31% and the product sells for $73 per unit. What is the company's break even point in dollar sales?

125,500. CM = Sales - VC. (25,100 * 11.10) - (25,100 * 6.10) = $125,500

A firm expects to sell 25100 units of its product at 11.10 per unit and to incur variable cost per unit of 6.10. Total FC are 71,000. Total CM is:

$52,000. Pretax Net Income= Sales - Variable cost - fixed costs. (25,600 * 11.60) - (25,600 * $6.60) - $76,000 = $52,000.

A firm expects to sell 25600 units of product at 11.60 per unit and VC of 6.60. TFC are 76,000. Pretax net income is:

$74,000. CM = Sales - VC 170,000-96,000= 74000

During march, expected total sales = 170,000 with VC of 96,000 and fixed costs of 26,000. CM for March is:

7.85. CM per unit = $24.15-$16.30 = $7.85

Sells for 24.15 and VC per unit is 16.30. TFC are 25400 and budgeted sales are 8400. What is contribution margin per unit?

Is the perfect of each sales dollar that remains after DEDUCTING the total unit variable cost

The Contribution Margin Ratio is :

Property Taxes

Which cost is most likely to be classified as fixed?


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