User Account

All Pages

Calculate the margin of safety

Assignment Help Accounting Basics
Reference no: EM133101773

Question - Cost Volume Profit Analysis - Orange manufactures and sells mobile phones. They only make one model of mobile phone called the "oPhone". Data relating to this product for 2022 is below:

Selling price per unit $1,500

Variable manufacturing costs per unit $900

Variable marketing and distribution costs per unit $250

Fixed manufacturing costs per year $675,000

Fixed non-manufacturing costs per year $375,000

Required -

1. Explain the difference between fixed and variable costs using examples.

2. Calculate the break-even point in units (oPhones).

3. Calculate the margin of safety for 2022 if budgeted sales are 4,000 units (oPhones).

4. How many units (oPhones) would Orange need to sell to earn a target profit of $700,000.

Reference no: EM133101773

Questions Cloud

Find a recent management news story : Using only the topics from this week, find a recent management news story that you found interesting. Share a link and provide an overview in your own words.
How you describe people and things : How you describe people and things? Why is it essential for a Professional to learn' how to effectively introduce yourself'
Perceptions of moral choices : Share one or two moral choices you have had to make at work and explain how you dealt with them. If you have not had a paying job, refer to volunteer work envir
Discuss the sustainability impact of the otomotive industry : Discuss the sustainability impact of the otomotive industry, considering the three pillars of sustainability: economic, environmental and societal dimensions.
Calculate the margin of safety : Cost Volume Profit Analysis - Orange manufactures and sells mobile phones. Calculate the margin of safety for 2022 if budgeted sales are 4,000 units (oPhones)
Negative impact in the manufacturing industry : Have these made a positive or negative impact in the manufacturing industry over the past 30 years?
Improved future participation in the group work : Do your self-analysis of any group activity that you have performed in the previous/current semester by demonstrating your strengths and weaknesses.
Why is an entrepreneurial attitude important : In this chapter, entrepreneurship is defined as the willingness to take risks and the knowledge and ability to use the other factors of production efficiently.
How much VAT does Wallis Company owe : Wallis sold the boards to various customers for $7.50 per unit for a net profit of $1.50 per unit. How much VAT does Wallis Company owe

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the residual income and return on investment

Suburban Lifestyles, Inc. has manufactured prefabricated houses for over 20 years. Calculate the Residual income and Return on investment

  Compute the amount was received from the note receivable

Company accepted from a customer a P4,000,000, 90-day, 12% note dated August 31, 2019. Compute the amount was received from the note receivable discounting

  What would be your total assessable income

If you earned an income of $36,500 in wages and other contractual income of $42,600, what would be your total assessable income

  What amount of cash will the firm receive

Assuming a 360-day year, what amount of cash (Rounded to the nearest dollar) will the firm receive from the finance company at the time a 100,000 account

  How many bonds must JRC sell

If the market value of each bond is $1,000, how many bonds must JRC sell to net $240 million after flotation costs

  Objectives of a system of internal control

Your friend, Mark, has opened a movie theater. Mark states that he does not have time to develop and implement a system of internal controls. a. Provide Mark with the objectives of a system of internal control.

  During the current year karen sells her entire interest in

during the current year karen sells her entire interest in central corporation common stock for 22000. she is the sole

  What is the amount of depreciation for the second full year

A machine with a cost of $76,026.00 has an estimated residual value of $4,163.00, What is the amount of depreciation for the second full year

  Discuss issued when the effective rate of interest

Bonds with a 7% stated interest rate that are issued when the effective rate of interest is 8% will

  Prepare a depreciation schedule for the unit of production

Prepare a depreciation schedule for the UNIT OF PRODUCTION METHOD showing asset cost, depreciation expense, accumulated depreciation

  What is the present value

What is the present value (aka price) of a 23-year, pure discount bond (zero coupon bond) that pays $1000 at maturity

  Journalize the adjusting entry on december

Journalize the adjusting entry on December 31 for the impaired goodwill. b. Journalize the adjusting entry on December 31 for the amortization of the patent rights.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd