Answer:
20.5%
Explanation:
Calculation for what Staley Co.'s margin of safety ratio (MOS%) if 600 units are sold would be
First step is to calculate Break-even amount
Break-even = $80,000/($480-$312)
Break-even= 476.19
Break-even= 477 approximately
Second step is to calculate the Margin of Safety
Margin of Safety = 600-477
Margin of Safety= 123
Now let calculate the margin of safety ratio
Margin of safety ratio=123/600
Margin of safety ratio=20.5%
Therefore Staley Co.'s margin of safety ratio (MOS%) if 600 units are sold would be 20.5%
Ratio of contribution margin = ($275 - $187)/$275 = 32%
Break-even point in sales dollars = $345,600/0.32 = $1,080,000.
<h2>
What is Break-even point?</h2>
The amount (total sales revenue) or output level (total units produced) at which a business has recouped all variable and fixed costs is known as the break-even point.
- As a result of Total Cost Equals Total Revenue, there is no profit or loss at break-even.
<h3>How do you determine the break-even point in sales volume?</h3>
Three values must be known in order to calculate a company's breakeven threshold in sales volume:
- a fixed price: Rent is one example of a cost that is not related to sales volume.
- varying expenses costs, such as the price of producing the good, that are based on sales volume
- Price at which the product is sold.
learn more about breakeven point at: <u><em>https://brainly.in/question/31484328?msp_srt_exp=6&referrer=searchResults</em></u>
#SPJ4
Answer:
Explanation:
The journal entry is shown below:
Loss on impairment A/c Dr $140,400
To Accumulated impairment loss A/c $140,400
(being the impairment loss is recorded)
The computation is shown below:
= Carrying value of the equipment - fair value of the equipment
where,
Carrying value of the equipment would be
= Cost of the equipment - accumulated depreciation
= $1,053,000 - $444,600
= $608,400
So, the loss would be
= $608,400 - $468,000
= $140,400