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What is the company margin of safety percentage

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Question - Provide appropriate computations for the following four questions:

1. The following is last month's contribution format income statement:

Sales (12000) - $1200000

Variable expense - 700,000

Contribution margin - 500,000

Fixed expense - 300,000

Net operating income- 200,000

What is the company's margin of safety percentage to the nearest whole percent?

2. Kendall Company has sales of 1,000 units at $60 a unit. Variable expenses are 30% of the selling price. If total fixed expenses are $30,000, the degree of operating leverage is:

Questions 3 and 4 relate to the following data:

Unit sales - 12000 units

Selling price - $25 per unit

Contribution margin ratio - 40%

Margin of safety percentage - 30%

3. Compute the break-even level in sales dollars?

4. Compute the net operating income at sales of 12,000 units?

Reference no: EM132759557

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