Breakeven point & Margin of safety
1. Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total variable expenses were $240,000, and fixed expenses were $45,000.
What is the company’s contribution margin (CM) ratio?
Estimate the change in the company’s net operating income if it were to increase its total sales by $1,500.
2. [The following information applies to the questions displayed below.]
4. Mohan Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next month’s budget appear below:
units per month
Compute the company’s margin of safety.
b. Compute the company’s margin of safety as a percentage of its sales. (%)
Purchase the answer to view it