Find what would the company margin of safety in dollars be

Assignment Help Managerial Accounting
Reference no: EM132581140

A company's contribution format income statement for last month is given below:

Sales (45,000 units × $21 per unit)$945,000

Variable expenses 661,500

Contribution margin 283,500

Fixed expenses 226,800

Net operating income$56,700

Question 1: The company considers renovating its operations by purchasing a new machine that would reduce variable expenses by $6.30 per unit. However, fixed expenses would increase to a total of $510,300 each month. Using the new machine would not cause a change in monthly sales quantity or price per unit. What would the company's margin of safety in dollars be if it purchases and uses the new machine?

Reference no: EM132581140

Questions Cloud

ERP and CRM in Business : How do ERP and CRM help a company? What direct effects do these systems have on customers?
Find the restaurant estimated total cost for december is : Find the restaurant's estimated total cost for December is closest to: (Round your intermediate calculations to 2 decimal places.)
How might marcus address the challenges : Marcus is a health care administrator who recently approved a new youth anti-smoking program at community centers located throughout an urban residential area.
Write the gap between what does company do : Find a company that is working like industrial 4.0 and write the gap between what does this company do and the real industrial 4.0 should look like
Find what would the company margin of safety in dollars be : Find What would the company's margin of safety in dollars be if it purchases and uses the new machine? A company's contribution format income statement
What type of analysis you are conducting in research studies : What type of analysis you are conducting in your research studies? What are the advantages and disadvantages of both inferential analysis and qualitative.
Decision making and management effectiveness : Why do you think decision making is considered a fundamental part of management effectiveness?
Find what dollar sales is required to attain a target profit : Bascatt Company currently distributes a product,If the company decides use the new supplier, what dollar sales is required to attain a target profit of $46,800?
Find company manufacturing overhead cost for the year was : 61,700 direct labor-hours during the year and incur $444,240 of manufacturing overhead cost. The company's manufacturing overhead cost for the year was

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine amount of factory overhead applied in february

Use this information to determine the amount of factory overhead that was applied in February. (round answer to the nearest whole dollar)

  What approaches to forecasting the needs for capital budgets

What are some successful approaches to forecasting the needs for capital budgets? Is it ethical for agencies to utilize social media to bolster

  Preview of financial accountant-forecasting

Generally forecasting and planning is considered the preview of the financial accountant or the forecasting and planning department.

  Analyse the latest financial statements

HI5001 Accounting for Business Decisions Group Assignment. The assignment aims to develop an understanding of financial statements structure and their use in decision-making. The task is to choose a publicly listed company from the Australian Stock..

  Find what is the common-size percentage for cost of sales

Find What is the common-size percentage for the cost of sales? $1,500,000; gross profit $640,000; net income $40,000 and income tax expense $35,000.

  What will be the internal rate of return of the project

Are there some practical difficulties you will encounter when making such capital budgeting decisions? What will be the internal rate of return of this project

  Should division of rhine autos make or buy the component

Should the Division of Rhine Autos make or buy the component? One of the divisions within Rhine Autos is currently negotiating

  How many dozen muffins must the muffin house sell

$15, variable costs are $9 per dozen, and total fixed costs are $4,200. How many dozen muffins must The Muffin House sell to breakeven?

  What is friar basis in the abbey stock after accounting

What is Friar's basis in the Abbey stock after accounting for this operating loss? Friar Corporation is the parent entity in a Federal consolidated

  Babbel company-job-order costing

Babbel Company is a manufacturing firm that uses the job-order costing. The company's inventory balances were as follows the the beginning of the year

  An annual goodwill impairment test

An annual goodwill impairment test is done at the reporting unit level.

  What is the benefit-cost ratio for the project

If the required rate of return is 20%, conduct a discounted cash flow calculation to determine the NPV. What is the benefit-cost ratio for the project

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