Compute the contribution margin ratio

Assignment Help Accounting Basics
Reference no: EM133065396

Question - Computing Contribution Margin Ratio and Margin of Safety - The following information relates to the only product sold by Mastrolia Manufacturing. Sales price per unit $ 45 Variable cost per unit 27 Fixed costs per year 296,000

Required -

a. Compute the contribution margin ratio and the dollar sales volume required to break even.

b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).

Reference no: EM133065396

Questions Cloud

Determine the demand function : a. Run OLS to determine the demand function as P = f(Q); how much confidence do you have in this estimated equation? Use algebra to invert the demand function t
Calculate how much of the carrying value of the bond : Calculate how much of the carrying value of the bond will be increased (decreased from January 1, 2022, to December 31, 2022
Describe china reform path : Describe China's reform path, including the forces that started China's reform efforts and how they continued through the 1980s and early 1990s.
Alliance-based business model : What are the compatibilities and complementarities of Tesco and Carrefour's core competencies, dynamic capabilities and business models?
Compute the contribution margin ratio : Sales price per unit $ 45 Variable cost per unit 27 Fixed costs per year 296,000. Compute the contribution margin ratio
Find the capital loss or gain and disposal tax effect : Find the capital loss or gain and disposal tax effect (tax credit or liability).
Value stream map and process design : Explain how value stream map and process design can be beneficial to an organization to reduce long wait time?
Texas tax system-abortion policy in texas : 1.) Do you believe that "tax fairness" is best viewed through the ideas of progressive and regressive taxes?
Communicate regarding module experiences : Provide the warehouse manager a summative report of the main points of focus you wish to communicate regarding the module experiences

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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