1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ASHA 777 [7]
3 years ago
5

Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. If the c

ompany expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales.
Business
1 answer:
Ipatiy [6.2K]3 years ago
5 0

Answer:

Results are below.

Explanation:

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

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

Break-even point in units= 354,000 / (175 - 116)

Break-even point in units= 6,000

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 354,000 / (59 / 175)

Break-even point (dollars)= $1,050,000

<u>Now, the margin of safety and margin of safety rate:</u>

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

Margin of safety= (10,000*175) - 1,050,000

Margin of safety= $700,000

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

Margin of safety ratio= 700,000 / 1,750,000

Margin of safety ratio= 0.4= 40%

You might be interested in
Can I get help on this job application please ?
Fynjy0 [20]

Answer:

The answer is below.

Explanation:

Most likely to do:

"Ask your store Manager if you can hold the markdown price for them so they can get it for the same price when it is back in store."

Doing the above will ensure you retain the customer's trust, and while you didn't direct your customer to a competitor, which is detrimental.

Least Likely to do:

"Offer to provide the address and phone number for the nearest store, and explain that stores get frequent shipments with new items."

Doing the above is detrimental to your store, as you will be sending your customers to a direct competitor.

6 0
2 years ago
Help please!!
vazorg [7]
The amount your insurance company is willing to pay in case you,your property or others are hurt
8 0
3 years ago
During the year a donor pledged $1,000,000 in funds to a not-for-profit private charter school. The school will receive the pled
KonstantinChe [14]

Answer:

D) It would not be recorded.

Explanation:

FASB means Financial Accounting Standards Board.

Financial Accounting Standards Board is a private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the US.

No matter what kind of restriction a donor might impose, FASB standards require nonprofits to report finances in a way that makes it clear which funds have donor restrictions and which funds come without donor restrictions. FASB standards are in three categories: “unrestricted,” “temporarily restricted,” and “permanently restricted.”

Unrestricted are those items that have no donor-imposed restrictions

Temporarily Restricted are those items that were received with a donor-imposed restriction that will be satisfied in the future (generally within one year)

Permanently restricted assets are funds of a nonprofit organization that must be used in designated ways and whose principal cannot be touched.

Since the school will recieve the pledge ONLY if it is able to raise $500,000 in funds over the next year, then the pledge would not be recorded

3 0
3 years ago
Which department of the U.S. federal government was budgeted to spend over $582 billion on goods and services in fiscal year 201
pav-90 [236]
The answer is Department of Defense
8 0
2 years ago
Trio Company reports the following information for the current year, which is its first year of operations.
Contact [7]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Direct materials $15 per unit

Direct labor $15 per unit

Overhead costs for the year

Variable overhead $3 per unit

Fixed overhead $120,000 per year

Units produced this year 20,000 units

Units sold this year 14,000 units

Ending finished goods inventory in

units 6,000 units

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

1<u>) Absorption costing method:</u>

Unitary fixed overhead= 120,000/20,000= 6

Unit product cost= direct material + direct labor + total unitary overhead

Unit product cost= 15 + 15 + 3 + 6= 39

<u>Variable costing:</u>

Unit product cost= direct material + direct labor + variable overhead

Unit product cost= 33

2) Ending inventory:

Absorption costing= 6,000*39= $234,000

Variable costing= 6,000*33= $198,000

3) Cost of goods sold:

Absorption costing= 14,000*39= 546,000

Variable costing= 14,000*33= 462,000

7 0
3 years ago
Other questions:
  • Which three report charts show how many Leads are in the Marketing pipeline based on Lead Status and what percent each Lead Stat
    9·1 answer
  • A mentor is a person who is advised, trained, or counseled by a trusted mentee.
    14·1 answer
  • The Groom company has 50,000 shares of $10 par value common stock outstanding when it declares a dividend of $1 per share. What
    12·1 answer
  • Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materi
    10·1 answer
  • Branding is used to A. identify, anticipate and satisfy customer requirements. B. determine which products are intended for mark
    14·1 answer
  • A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather j
    15·1 answer
  • A business-level strategy addresses: Group of answer choices how a business should define its mission and vision. how an organiz
    6·1 answer
  • Oligopolies exist because of barriers to entry. One of the most important barriers to entry is due to economies of scale. Why is
    9·1 answer
  • In cash flow estimation, the existence of externalities should be taken into account if those externalities have any effects on
    10·1 answer
  • Operations management is the set of activities that creates value in the form of goods and services by transforming true or fals
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!