Reference no: EM131753849

The margin of safety is:

the excess of budgeted or actual sales over budgeted or actual variable expenses.the excess of budgeted or actual sales over budgeted or actual fixed expenses.the excess of budgeted or actual sales over the break-even volume of sales.the excess of budgeted net operating income over actual net operating income.

The break-even in units sold will decrease if there is an increase in:

unit sales volume. total fixed expenses. unit variable expenses. selling price.

Which of the following is NOT a correct definition of the break-even point?
the point where total sales equals total expenses. the point where total profit equals total fixed expenses.the point where total contribution margin equals total fixed expenses. the point where total profit equals zero.

Brees Inc., a company that produces and sells a single product, has provided its contribution format income statement for April.

Sales (6,900 units)	$	400,200
Variable expenses		262,200
Contribution margin		138,000
Fixed expenses		103,500
Net operating income	$	34,500

If the company sells 6,800 units, its total contribution margin should be closest to:

$136,000

$34,500 $30,000 $33,979

The records of the Dodge Corporation show the following results for the most recent year:

Sales (17,500 units)	$	367,500
Variable expenses		245,000
Net operating income		52,500

Given these data, the unit contribution margin was:

$21

$4

$3

$7