Margin of safety percentage-break-even point

Assignment Help Financial Accounting

Reference no: EM13906204

James Company has a margin of safety percentage of 20%. The break-even point is $220,000 and the variable costs are 40% of sales. Given this information, the operating profit is:

a. $44,000.

b. $88,000.

c. $22,000.

d. $33,000.

Reference no: EM13906204

Questions Cloud

Why do monopolists produce where mc=mr : Why do monopolists produce where MC=MR?

Describe the related-party limitation on accrued deductions : Describe the related-party limitation on accrued deductions. What tax savings strategy is this limitation designed to thwart? What are the relative advantages of the cash and accrual methods of accounting?

Predetermined overhead rate is based on direct labor-hours : At the beginning of the year, manufacturing overhead for the year was estimated to be $670,700. At the end of the year, actual direct labor-hours for the year were 36,200 hours, If the predetermined overhead rate is based on direct labor-hours, then ..

How much overhead would be applied to production : Scottso Corporation applies overhead using a normal costing approach based upon machine-hours. Budgeted factory overhead was $286,500, budgeted machine-hours were 19,100. Actual factory overhead was $320,125, actual machine-hours were 19,700. How muc..

Margin of safety percentage-break-even point : James Company has a margin of safety percentage of 20%. The break-even point is $220,000 and the variable costs are 40% of sales. Given this information, the operating profit is:

Calculate bond interest expense for the first payment : Abitibi Corporation issued $649,000, 8%, 10-year bonds on January 1, 2014, for $606,789. This price resulted in an effective-interest rate of 9.0% on the bonds. Interest is payable semiannually on July 1 and January 1. Abitibi uses the straight line ..

The machine has a book value : Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $ 45,000 and a remaining useful life of 5 years, at which time its salvage value will be zero.

Calculate the issue price of the bond : Wilson Corporation is issuing $200,000 of 12%, 5-year bonds when potential bond investors want a return of 10%. Interest is payable semi-annually. Calculate the issue price (present value) of the bond.

Determine side plate that provide economical and safe design : An axial load P is supported by a short W8 X 40 column of a cross-sectional area A = 11.7 in2 (inches squared) and is distributed to a concrete foundation by a square plate as shown (in the attachment) Knowing that the average normal stress in the..

User Account

All Pages