Essay
During the current year,Vanguard Company sold 80,000 of its only product at a selling price of $60 per unit.Variable costs were $18 per unit,and Vanguard's margin of safety for the year was 25,000 units.
Required:
1)Calculate Vanguard's margin of safety ratio for the current year.
2)What was the amount of Vanguard's fixed costs for the current year?
Correct Answer:
Verified
1)Margin of safety ratio = margin of saf...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q125: Company A has break-even sales of 90,000
Q126: Joseph Company has variable costs of $80
Q127: How does an increase in variable costs
Q128: Camden Company sets the selling price for
Q129: What happens to the break-even point in
Q131: Select the term from the list provided
Q132: Rose Corporation sells backpacks.Variable costs for this
Q133: Adams Company sells a product whose contribution
Q134: Sensitivity analysis is performed in order to
Q135: Burke Company has a break-even of $600,000