What is the margin of safety in units

Assignment Help Managerial Accounting

Reference no: EM133417318

Question: Accurate Accounting provides accounting services at an average price of $110 per hour and incurs variable costs of $60 per hour. Assume average fixed costs are $7,200 a month. (Round your answer to the nearest whole unit.)

What is the number of hours that must be billed to reach the breakeven point?
If the company desires to make a profit of $3,600, how many hours must be completed?
The company thinks it can reduce fixed costs to $6,800, but variable cost will increase to $64 per hour. The price per unit will not change. What is the new breakeven point in hours?

Thrills Amusement Park provides a variety of attractions. Thrills sells tickets at $50 per person as a one-day entrance fee. Variable costs are $28 per person, and fixed costs are $178,800 per month. Assume that Thrills reduces fixed costs from $178,800 per month to $166,500 per month.

Compute the new breakeven point in tickets and in sales dollars.

Smith Plumbing makes a deluxe sink faucet. The company is currently producing and selling 100 faucets per month. Data are as follows:

Sales price per unit	$400
Variable cost per unit	$235
Fixed costs per month	$5,115

1. What is the margin of safety in units?

2. What is the margin of safety in sales dollars?

Reference no: EM133417318

Questions Cloud

How does fund balance reported in the financial statements : How does the fund balance reported in the financial statements (balance sheet) from a prior year help shape the unrestricted budget reserve for a future year?

Given the brutal realities of the world : Given the brutal realities of the world, is a feminine approach really the best way in a highly competitive marketplace? Why or why not?

Urine test for alcoho and ethanol : What does .500 g/dl means in urine test for alcoho/ ethanol? What cause this numbers in a person that does not drink?

What type of behavioural issues are typically encountered : what type of behavioural issues are typically encountered by organizations and what is the cause of those behavioural issues? Please include references in your

What is the margin of safety in units : What is the number of hours that must be billed to reach the breakeven point? If the company desires to make a profit of $3,600, how many hours must be complete

Husband giovanni has been diagnosed with dementia : Angelina is a 72-year-old woman with severe rheumatoid arthritis. Her 73-year-old husband Giovanni has been diagnosed with dementia

How amazon is doing relative to the competitor walmart : Provide a summary of how Amazon is doing relative to the competitor Walmart and to the industry in the five major categories in recent last three years.

What kind of bone was fractured : If someone breaks their arm what kind of bone was fractured (long, flat, irregular, or short bone), and how did it happen? ?What kind of break was it? ?

What do you notice about how much was recorded as bad debt : What do you notice about how much was recorded as Bad Debt Expense relative to the amount of receivables written off each year at Quest?

User Account

All Pages