Answer:
Margin of safety = 3190.922902 units rounded off to 3191 units
Explanation:
Margin of safety is the cushion or extra number of units that the business sells over the break even point in units. The break even point is the point where total revenue equals total cost and the business earns no profit or no loss. To calculate the margin of safety in units, we deduct the break even number of units from the budgeted number of units or sales.
Margin of safety = Budgeted units - Break even number of units
First we need to calculate the break even in units. The formula for break even in units is,
Break even in units = Fixed cost / (Selling price per unit - Variable cost per unit)
Break even in units = 9376 / (6.74 - 2.33)
Break even in units = 2126.077098 rounded off to 2126 units
Margin of safety = 5317 - 2126.077098
Margin of safety = 3190.922902 units rounded off to 3191 units
Answer:
Variable cost per unit= $2.27 per machine hour
Explanation:
Giving the following information:
January 3,041 $4,032
February 3,456 $4,608
March 4,147 $6,912
April 5,184 $9,101
May 3,686 $5,760
June 5,322 $9,216
To calculate the unitary variable cost, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (9,216 - 4,032) / (5,322 - 3,041)
Variable cost per unit= $2.27 per machine hour
Answer:
b. Common-size income statement
Explanation:
The common-size income statement refers to the income statement which show the each item of the income statement with respect to the percentage of sales revenue.
It helps to analyze the company overall productivity, financial position, performance of the company that helps the company to compare with its competitors.
Answer:
$12,000
Explanation:
Take 20 pieces $20 average price per piece 30 days
= $12,000 expected sales for the month
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
