How do calculate in sales units the margin of safety for ipm

Assignment Help Managerial Accounting
Reference no: EM132690628

International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows:

 

Alpha

Beth

Gamma

Total

Selling price per unit

$250

$400

$1 500

 

Variable cost per unit

$80

$200

$800

 

Expected unit sales (annual)

12,000

6,000

2,000

20,000

Sales mix

50 percent

40 percent

10 percent

100 percent

Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levels of sales.

Required:

Question a) Calculate the weighted average unit contribution margin, assuming a constant sales mix.

Question b) How many units of each printer must be sold to break even?

Question c) i) Explain what is margin of safety

ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000 units?

Reference no: EM132690628

Questions Cloud

What do you think is the meaning behind the dream : Write about a dream that really made an impact on you. It can be a recurring dream, a scary dream, a happy dream, or an especially vivid dream.
Define the two types of conflict that may spontaneously : Define the two types of conflict that may spontaneously occur in group decision-making situations then briefly explain how each type of conflict affects team pe
How to change the bank account details for the supplier : You are processing a number of transactions in MYOB related to your role as the creditors, How to change the bank account details for this supplier in MYOB.
Explain the objectives of the nclb act : As discussed in our textbook, Locke and Rousseau were ahead of their time in terms of formulating educational methods. The "No Child Left Behind" Educational.
How do calculate in sales units the margin of safety for ipm : International Printer Machines (IPM), How do Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000 units?
Describe what makes you curious about the disorder : For this week's discussion, we will explore common mental health disorders. Select a disorder from the list below that you are not familiar with, meaning you.
Find what would be journal entries : Deferred tax liability 30th June 2012 120,000 (carried forward). 30Th june 2013 147,300 (current year). What would be journal entries?
How recommendations could improve the culture environment : You are the new HR manager for a large, 100-year old company. The company has several diversity-oriented groups and promotes growing the number of supervisors.
Prepare the budget schedule for cash collections during june : Metropolitan Dental Associates, Prepare the budget schedule for cash collections during June for professional services rendered during May and June.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What understand by budgets

What you understand by Budgets, Fixed Budgets and Flexible Budgets in the context of control and performance evaluation of an organization of your choice.

  What fixed overhead applied must be

If the fixed overhead volume variance was $3,200 unfavorable and the fixed over head spending variance was $1,200 favorable, fixed overhead applied must be?

  Determine what is equivalent annual saving from purchase

Find What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately. (Do not round intermediate calculations)

  Prepare the production budget and schedule of expected cash

Prepare the sales budget and a schedule of expected cash collections budgets and schedules for the year, showing both quarterly and total figures

  Is the format of the budget comparable

Is the format of the budget comparable with that of previous periods so that several reports over time can be compared if so desired?

  What initial markup is needed for the retailer

A shoe retailer plans, for the period, What initial markup % is needed for this retailer's merchandise to achieve the desired profit goal?

  Prepare cost of good manufacture schedule for clarkson co

Prepare a cost of goods manufactured schedule. Raw Materials Inventory 7/1/19 ,$51,600. Raw Materials Inventory 6/30/20,45,500

  Determine what is the length of the cash conversion cycle

Accounts payable is 40 days, and the average age of inventory is 69 days. Assuming a 365-day year, what is the length of its cash conversion cycle?

  Develop hypotheses for the firm marketing department

Using the variables (factors) you identified above, develop hypotheses for the firm's marketing department that planned to conduct demand estimation next year.

  Calculate the variable rate per employee hour

Using the high-low method, calculate the fixed cost of labor, calculate the variable rate per employee hour, and construct the cost formula for total labor cost

  Find what is the price per share of the company stock

Find What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  What effect making proposed investment on laptop division

What effect will making the proposed investment have on Laptop Division's ROI? Would ROI or RI be the better performance measure for Ms. Peters?

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