User Account

All Pages

What is the company margin of safety in dollars

Assignment Help Accounting Basics
Reference no: EM132990256

Question - Micol & Co. Ltd sells a single product baby hamper with a selling price of $150 and variable costs per baby hamper of $100. The company's monthly fixed expenses are $200,000.

Required -

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

b) What is the company's margin of safety in dollars, assume sales is expected to be $000,000?

c) How many baby hampers will Micol & Co. Ltd need to sell (in sales dollars) In order to realize a target profit of $500,000?

d) Construct a contribution margin income statement for the first month (in July) that reflects 82400000 in sales revenue for Micol & Co. Ltd.

e) Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months?

Reference no: EM132990256

Questions Cloud

Heuristics affects managers escalation of commitment : Describe how framing heuristics affects a managers' escalation of commitment.
Explain how albany corp can reduce ita economic exposure : All other expenses are in U.S. dollars. Explain how Albany Corp. can reduce ita economic exposure to exchange rate fluctuations
How much income will be allocated to roberto : A combined $83,500 profit from the remaining stores. If Bright Light Inc. is an S corporation, how much income will be allocated to Roberto?
Argue pros and cons of evidence-based practice : Argue the pros and cons of evidence-based practice (EBP). Why would a focus on EBP be good for the discipline of nursing?
What is the company margin of safety in dollars : The company's monthly fixed expenses are $200,000. What is the company's margin of safety in dollars, assume sales is expected to be $000,000
Which year would have first been required to use the accrual : If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?
Development of applied medicine : Discuss the role nursing research plays in the development of applied medicine.
What is amount and nature of the book-tax difference to coop : What is the amount and nature of the book-tax difference to Coop associated with the dividend distribution (ignoring the dividends received deduction)?
What adjustment to the net income will be made : If Kingston prepares their cash flow statement using the indirect method, what adjustment to the net income will be made for the year

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd