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Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159 Exercise 55
Margin of safety
a. If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales
b If the margin of safety for Canace Company was 20%, fixed costs were $1,875,000, and variable costs were 08% of sales, what was the amount of actual sales (dollars) (Hint: Determine the break-even in sales dollars first.)
a. If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales
b If the margin of safety for Canace Company was 20%, fixed costs were $1,875,000, and variable costs were 08% of sales, what was the amount of actual sales (dollars) (Hint: Determine the break-even in sales dollars first.)
Explanation
Verified
Verified
A product cost comprises of variable cos...
Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
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