What is the company margin of safety in dollars

Assignment Help Managerial Accounting
Reference no: EM132855137

Question - The following is Alsatia Corporation's contribution format income statement for last month:

Sales 1,400,000

Less: variable expenses 900,000

Contribution margin 500,000

Less: Fixed expenses 300,000

Net Income 200,000

The company has no beginning or ending inventories and produced and sold 10,000 units during the month.

Required -

a. What is the company's break-even in units?

b. If sales increase by 100 units, by how much should net income increase?

c. How many units would the company have to sell to attain target profits of $225,000?

d. What is the company's margin of safety in dollars?

Reference no: EM132855137

Questions Cloud

What would be the price of the bond : What would be the price of the bond if the yield were 9% instead if the yield per annum is quoted as annual compounding
What is the probability that the next coin flip : Suppose you just flipped a fair coin 8 times in a row and you got heads each time! What is the probability that the next coin flip will result in a heads?
Calculate an amount for planning materiality : Analysis and evaluation: Discuss the factors to consider when determining planning materiality for MSI. Calculate an amount for planning materiality
Find confidence interval for true mean cholesterol level : b. Compute the 95% confidence interval for the true mean cholesterol level in this group. Show all calculations.
What is the company margin of safety in dollars : The company has no beginning or ending inventories and produced and sold 10,000 units during the month. What is the company margin of safety in dollars
What is the probability that the first car turns left : Assuming each car is equally likely to go in any of the 3 directions, what is the probability that the first car turns left and the second car turns right?
Find probability of five randomly selected 7-year old female : The probability that a randomly selected 7 year old female feral cat will live to be 8 years old .097678
How much interest income will you have : You hold the bond for the entire year. Assume semiannual compounding. How much interest income will you have to declare on your tax return
Find the mean and standard deviation for the sample : In a sample distribution, a score of X=21 corrspond to Z= -1 and a score of X=12 corresponds to Z=-2.5. Find the mean and standard deviation for the sample.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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