Mcmurtry Corporation sells a product for $280 per unit. The product's current sales are 13,900 units and its break-even sales ar
1 answer:
Answer:
Margin of safety as a percentage of sales=0.25=25%
Option C is correct (25%)
Explanation:
Given Data:
Sale price per unit=$280
Current Sales=13,900 units
Break Even sales=10,425 units
Required:
Margin of safety as a percentage of sales=?
Solution:
Margin of safety in Dollars= Total Current Sales- Break even sales
Total Current sales=Sale price per unit*Current Sales
Total Current sales=$280*13,900
Total Current sales=$3,892,000
Break Even Sales=$280*10,425
Break Even Sales=$2,919,000
Margin of safety in Dollars= $3,892,000-$2,919,000
Margin of safety in Dollars= $973,000
Margin of safety as a percentage of sales=
Margin of safety as a percentage of sales=
Margin of safety as a percentage of sales=0.25=25%
Option C is correct (25%)
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Answer:
10% of the Janitorial Department's $450,000 costs is allocated to the Cutting Department
Explanation:
Given:
Costs Square Feet Number of Employees
Janitorial Department $450,000 100 20
Cafeteria Department $200,000 10,000 10
Cutting Department $1,500,000 2,000 60
Assembly Department $3,000,000 8,000 20
Cafeteria Cutting Assembly Total
Department department department
Square feet 10,000 2,000 8,000 20,000
% of allocation 50% 10% 40%
× 100
× 100
× 100
Hence, % usage by the cutting department is 10%