Calculate the margin of safety in units

Assignment Help Managerial Accounting

Reference no: EM133502793

Case: Bob's Bike Shop has the following income statement.

Sales ($150 per unit)		$150,000
Less Cost of Goods sold ($96 per unit)		96,000
Gross margin		54,000
Less Operating costs
Salaries	$24,000
Advertising	12,000
Shipping ($6 per unit)	6,000	42,000
Operating income		$ 12,000

Required:

a. Calculate the contribution margin per unit.

b. Calculate the contribution margin ratio.

c. Calculate the breakeven point in units. In sales dollars.

d. Calculate the margin of safety in units. In dollars.

Reference no: EM133502793

Questions Cloud

Which indicates the topic focus of the paper to be examined : which indicates the topic focus of the paper to be examined. Then for each main body paragraph a thesis sentence and citations for the references that indicate

Identify and discuss the criminal activity or activities : Identify and discuss the criminal activity/activities. Analyze the major issues. Examine the effects of white collar crime on the economy and society.

Describe the shapes of both the average product and marginal : Indicate the number of workers used per day where the law of diminishing marginal returns begins for producing buckets of popcorn.

What did you learn from the experience that can beneficial : Did you face any challenges, any success? If so, what were they? What did you learn from the experience that can beneficial for you as advanced practice nurse?

Calculate the margin of safety in units : Calculate the contribution margin ratio and Calculate the margin of safety in units. In dollars

How can i improve the care for my patients : How can I improve the care for my patients? How can I improve the system of care? How would you identify and prioritize change?

Why should we not be satisfied with all favourable : Why should we not be satisfied with all favourable or all unfavourable variances and How can we tell that the process of variance analysis is working effectivly

How can you persuade clients to allow you to spend time : What is Refactoring? How can you persuade clients to allow you to spend time on refactoring when all they want is new functionality?

Explain the iowa model of evidence- based practice : Explain how the Iowa model of evidence- based practice and concepts of data, information, knowledge.

User Account

All Pages