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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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IgorC [24]

Answer: 49.10 pee unit

Explanation:

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According to peterson, what was the catalyst for the formation of the first truly global trade network?
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Question 11 Financial information is presented below: Operating expenses $ 33000 Sales returns and allowances 5000 Sales discoun
Sergeeva-Olga [200]

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$38,000

Explanation:

in order to determine gross profit we must prepare the following:

total revenue                    $156,000

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7 0
3 years ago
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insens350 [35]

Answer: B. classification is a political issue—these groups fear that their political clout will decline if their numbers go down

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A great example would be the Ikwere people of Southern Nigeria. They share a common ancestry with the Igbos of Eastern Nigeria and generally have very similar customs. Even the language is similar and they had always been considered Igbo until after the Civil War in Nigeria broke out with the Igbos being the main rebels. With the Civil war concluded, the Federal Government officially recognized the Ikwere as an ethic group independent of the Igbo. The Ikwere occupied crude oil rich areas and this recognition therefore robbed the Igbo of valuable lands and political clout.

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