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Korvikt [17]
3 years ago
11

The following monthly data are available for Seasons Company which produces only one product: Selling price per unit, $42; Unit

variable expenses, $14; Total fixed expenses, $42,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June?
Business
1 answer:
dybincka [34]3 years ago
4 0

Answer:

The margin of safety for june is 2500 units.

Explanation:

The margin of safety is the additional units sold by a firm over its break even point.

The break even point is the point where the firm is making no profit or no loss.

To calculate the margin of safety, we first need to find out the break even point in units.

Break even in units = Fixed costs / contribution per unit

Where, contribution per unit = Selling price per unit - Variable cost per unit

So,

Break even in units = 42000 / (42 - 14) = 1500 units

The margin of safety is = 4000 - 1500 = 2500 units

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Hat Tricks Company (HTC) is a Buffalo, New York, manufacturer of hats and gloves. Recently, the company purchased a new machine
saul85 [17]

The selling price per hat is mathematically given as

S=$62

<h3>What is the selling price per hat?</h3>

Direct labor hours required to produce first 100 hats=10hr

Direct labour cost =20hr*60$/hour = $1200

Other Direct cost =100hats*19$/hat = $1900

Total Direct cost. = $3100

Selling price is 200% of Direct production cost

$3100*200% = $6200

The selling price per hat = $6200 / 100hats

The selling price per hat = $62

In conclusion, The selling price per hat = $62

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Marisol's online jewelry store originally sold only earrings and necklaces for women. After adding men's rings and cuff links, p
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Modified Accelerated Cost Recovery System (MACRS) (LO 7.4) Mike purchases a new heavy-duty truck (5-year class recovery property
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Answer: See explanation

Explanation:

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