What is the company margin of safety in dollars

Assignment Help Managerial Accounting
Reference no: EM133008559

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: EM133008559

Questions Cloud

What is the approximate days of sales in inventory : Sales (all credit): $6,000,000; Cost of Goods Sold: 80% of Sales; Accounts receivable: $350,000; What is the approximate Days of Sales in Inventory
How would you approach this to effectively and resources : They have asked your advice regarding the implementation of a new system. How would you approach this to effectively and resources
At what mileage should the warranty be set : A manufacturing process produces auto tires. A sample of miles at replacement is recorded in DATA. At what mileage should the warranty be set
What is palmetto accounts receivable turnover ratio : Palmetto also had beginning and ending accounts receivable balances of $12,000 and $18,000, respectively. What is Palmetto's accounts receivable turnover ratio
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
Calculate the NPV of the investment : You are considering an investment that will cost $15,000 and generate returns of $4,000 at the end of year 1, Calculate the NPV of the investment
What must rate of return be to cover your child education : The cost of college tuition is $300,000 and you have $65,000 to invest right now. What must your rate of return be to cover your child's education
Calculate the return on capital employed : North division sells luxury motor vehicles, which it manufactures in a fully automated production plant. Calculate the return on capital employed
Compute the present value factors : Using the present value method, determine whether the company should purchase the machine. Compute the present value factors

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