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MariettaO [177]
3 years ago
14

The following monthly data are available for Waterway Industries. which produces only one product: Selling price per unit, $54;

Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units. How much is the margin of safety for the company for June
Business
1 answer:
o-na [289]3 years ago
8 0

Answer:

Margin of safety= 950 units

Explanation:

<u>First, we need to calculate the break-even point in units:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 42,000 / (54 - 14)

Break-even point in units= 1,050

<u>Now, the margin of safety in units:</u>

<u></u>

Margin of safety= (current sales level - break-even point)

Margin of safety= 2,000 - 1,050

Margin of safety= 950 units

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hornton Computer Services, Inc. has been in business for six months. The following are basic ­operating data for that period: Mo
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Answer:

The total monthly fixed cost and the variable cost per hour is $1,540 and $23

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Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per hour = (High Operating cost - low operating cost) ÷ (High service hours - low service hours)

= ($11,200 - $4,300) ÷ (420 hours - 120 hours)

= $6,900 ÷ 300 hours

= $23

Now the fixed cost equal to

= High operating cost - (High service hours × Variable cost per hour)

= $11,200 - (420 hours × $23)

= $11,200 - $9,660

= $1,540

For computing the contribution margin per hour, first we have to compute the revenue per hour which is shown below:

= Revenue ÷ service hours

= $6,000 ÷ 120 hours

= $50

We know that,

The contribution per hour = Revenue per hour - variable cost per hour

                                           = $50 - $23

                                           = $27

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3 years ago
How does the automated system improve the efficiency and timeliness of financial <br> statements?
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A product manager is eager to develop a new product idea. To gain approval to do so, the product manager orders the research tea
vladimir1956 [14]

Answer:

The answer is b. Advocacy research

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8 0
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Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream
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Answer:

d. Charities

Explanation:

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7 0
2 years ago
During December, Rainey Equipment made a $658,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.
crimeas [40]

Answer:

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