Essay
The Cornish Corporation has budgeted fixed costs of $125,000 and an estimated selling price of $16.50 per unit.The contribution margin ratio is 40% and the company plans to sell 25,000 units in 2017.
Required:
(a)Compute the break-even point in dollars.
(b)Compute the margin of safety for 2017.
(c)Compute the expected operating profit for 2017.
Correct Answer:
Verified
(a)BE = $125,000/.40 = $312,50...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
Q6: Operating leverage refers to the extent to
Q8: Dartmount Corporation has provided its contribution
Q9: Broken Arrow Inc.produces and sells a
Q11: Data concerning Fowler Corporation's single product
Q16: Opal Company manufactures a single product that
Q16: Given the following information:<br> <span class="ql-formula"
Q17: Evergreen Corporation manufactures circuit boards and
Q18: In multi-product cost-volume-profit (CVP)analysis,the fixed product mix
Q34: Boxer Inc. expects its sales in June
Q42: A decrease in the margin of safety