Determine the companys margin of safety

Reference no: EM132778517

Question 1. Kalim Company has fixed costs of $150,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below.
Product Selling Price Variable Cost per Unit Contribution Margin per Unit
R $40 $25 $15
S 60 50 10
The sales mix for products R and S is 40% and 60%, respectively. Determine the break- even point in units of R and S.

Question 2. Saik Co. reports the following data:
Sales $750K
Variable costs $300K
Fixed costs 150K

Determine Saik Co.'s operating leverage.

Question 3. Rogan Inc. has sales of $750,000, and the break-even point in sales dollars is $675,000. Determine the company's margin of safety as a percent of current sales.

Question 4. Soft Glow Candle Co. pays 20% of its purchases on account in the month of the pur- chase and 80% in the month following the purchase. If purchases are budgeted to be $15,000 for October and $17,000 for November, what are the budgeted cash payments for purchases on account for November?

Reference no: EM132778517

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