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borishaifa [10]
3 years ago
12

Margin of Safety Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $4

5 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 1,650. Required: 1. Calculate the margin of safety in terms of the number of units. units 2. Calculate the margin of safety in terms of sales revenue. $
Business
1 answer:
valina [46]3 years ago
3 0

Answer:

Margin of safety - Units =3350

Margin of safety - Sales Revenue = $251250

Explanation:

Margin of Safety indicates how much sales may decrease before a loss can be made.

<u>Margin of safety - Units</u>

Margin of safety - Units = 5000-1650 =3350

<em>Margin of Safety as a % = 3350/5000 ×100 = 67%</em>

<u>Margin of safety - Sales Revenue</u>

Expected Sales = (5000 × $75) =$375000

Margin of Safety = $375000 × 67% = $251250

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If brainly say you will never run out of answers
asambeis [7]

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2 years ago
Contribution Income Statement and Cost-Volume-Profit Graph Kopi Company produces dog cages that are sold for $38 per unit. The c
Marrrta [24]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the total unitary variable cost:</u>

Direct materials= 10

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Direct labor= 2

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<u>Now, the contribution margin income statement:</u>

Sales= 5,000*38= 190,000

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7 0
3 years ago
Nice Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selli
attashe74 [19]

Answer:

Therefore, the change in total contribution margin is equal to change in net operating income, so there is no change in fixed expenses  and will not be affected.

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The computation as per given question is given below:-

Variable cost per unit

= $48 + $65

= $113

Contribution margin per unit

= $240 - $113

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Unit Monthly sales

= 1,500 + 240

= 1,740

Total contribution margin

= 1,740 × $127

= $220,980

Total contribution margin

= 1,500 × $192

= $288,000

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6 0
3 years ago
Campbell's soup used several advertising campaigns that stressed the benefits of soup in general. for example, one tagline used
enot [183]

Answer:

The correct answer is letter "A": generic problem recognition.

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Therefore, <em>by portraying consumers the different benefits of its soup, Campbell aimed to stimulate the generic problem recognition.</em>

7 0
3 years ago
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