Consider the following production and cost data for two products, Q and P: Product Q Product P Contribution margin per unit $35
1 answer:
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Answer:
The current values for BEp and margin of safety before the proposed changes are:
BEP units: 7,800
in dollars: $ 358,800
Margin of safety:
2,200 units or $ 101,200 of sales
Explanation:
The break even pont is the level of salesthat makes the operating income equal to zero. the margin of safety is the amount above this level at curernt sales.
Contribution per unit: $23
Fixed Cost $179,400
179,400 / 23 = 7,800
In dollars: 7,800 units x $46 each = $ 358,800
Margin of safety:
10,000 - 7,800 = 2,200
in dollars 460,000 - 358,800 = 101,200
Answer:
$2,000
Explanation:
Given:
Weekly payroll = $5,000
Number of working days for which wages are paid from Monday to Friday = 5
Wages paid per day =
or
Wages paid per day =
or
Wages paid per day = $1,000
Thus,
from Monday to Tuesday total wages paid
= Wages per day × Number of days
= $1,000 × 2
= $2,000
Hence, the amount of Wages Expense that should be recorded on that date is $2,000