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lara [203]
3 years ago
15

A company revealed the following figures: Sales revenue $2,240,000 Contribution margin $560,000 Net operating income $410,000 Ho

w much is the company's margin of safety in dollars
Business
1 answer:
Alexandra [31]3 years ago
3 0

Answer:

The company's margin of safety in dollars is $1,640,000 .

Explanation:

Margin of Safety is the amount in units or dollars by which sales may fall before a Company starts making a loss.

The first step is to calculate break even point  in dollar sales.

Break even point  in  dollar sales = Fixed Costs / Contribution Margin Ratio

Where,

Fixed Costs = Contribution margin - Operating Income

                    = $560,000 - $410,000

                    = $150,000

Contribution Margin Ratio = Contribution margin ÷ Sales revenue

                                           = $560,000 ÷ $2,240,000

                                           = 0.25

Thus,

Break even point  in  dollar sales = $150,000 / 0.25

                                                       = $600,000

Margin of Safety = Expect Sales - Break Even Sales

                            = $2,240,000 - $600,000

                            = $1,640,000

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<em>Answer:</em>

<em>b. are successful "integrators' whose job is to coordinate the work of departments.          </em><em>                     </em>

<em>Explanation:</em>

<em>In psychology, </em><em>the "acquired-needs theory" was proposed by David McClelland and is referred to an individual's particular needs that are being acquired or gained over time and therefore it is being shaped by his or her different life experiences.</em>

<em>An individual who is experiencing high needs for affiliation </em><em>desires to get warm "interpersonal approval and relationships" from the people with whom he or she consists of regular contact. A strong bond with the other person makes him or her feels that he or she is important for the other person.</em>

8 0
3 years ago
American Delights manufactures a wide variety of holiday and seasonal decorative items. American's activity-based costing overhe
Maurinko [17]

Answer:

Total cost= $34,780

Explanation:

<u>First, we need to allocate costs to Snow Man project:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

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Total allocated costs= $14,580

<u>Now, the total costs:</u>

Total cost= 19,000 + 30*40 + 14,580

Total cost= $34,780

4 0
3 years ago
Planning helps managers eliminate uncertainty and insulates organizations from change.
HACTEHA [7]
This would be (B) False, because insulates means to protect and sometime in life we all have to change, and sometimes to make it better so people would love to buy or enjoy products.
5 0
3 years ago
Help please. 45 points.
hammer [34]
Buying new technology direct correlation with an increase in productivity for a company
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3 years ago
Lightsey Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of acti
sergey [27]

Answer:

Direct material price variance= $966.4 unfavorable

Explanation:

Giving the following information:

Actual level of activity was 15,100 skeins.

Standard cost= $0.51 per skein.

The actual dye cost last month was $8,660.

<u>To calculate the direct material price variance, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

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8 0
3 years ago
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