What is the margin of safety assuming sales total

Assignment Help Managerial Accounting
Reference no: EM132598200

Julia Child Company sells baby car seats to retailers for an average of $85 each. The variable cost of each car seat is $48 and monthly fixed selling costs total $6,000. Other monthly fixed costs of the company total $7,000.

Question 1. What is the breakeven point in number of car seats?

Question 2. What is the margin of safety, assuming sales total $32,000?

Question 3. What is the breakeven level in car seats, assuming variable costs increase by 20%?

Question 4. What is the breakeven level in car seats, assuming the selling price goes up by 10%, fixed selling costs decline by 10%, and other fixed costs decline by $1,000?

Reference no: EM132598200

Questions Cloud

Find what is the accounting rate of return for machine : Find What is the accounting rate of return for this machine? A projected income statement for each year of the asset's life appears below.
What is the corresponding Statements of Standards : What is the corresponding Statements of Standards for Accounting and Review Services SSARS number for this guidance
What process is occurring in the plant cells : What process is occurring in the plant's cells to produce the gas in the bubbles that appear?
Portion of pam income is based on commission : Since the major portion of Pam's income is based on commission, her earnings vary from one month to the next.
What is the margin of safety assuming sales total : What is the breakeven level in car seats, assuming variable costs increase by 20%? What is the margin of safety, assuming sales total $32,000?
Transient method of transformation in plants : Which of the choices below is not true for the transient method of transformation in plants?
How cell corrects errors made in genetranscription : RNA polymerase II (Pol II), a key enzyme in our gene expression, is responsible for transcribing DNA into messenger RNA.
Find the total increase or decrease in net income : Find The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is
How that data would be validated and used for future studies : How do you factor in unforeseen events that may reduce the number of individuals in a fish population and how that data would

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