Maritime Manufacturing Company produces and sells a high-quality handbag. During 2012, handbag sales were $600,000, the contribution
Question:
Maritime Manufacturing Company produces and sells a high-quality handbag. During 2012, handbag sales were $600,000, the contribution margin ratio was 40%, and the margin of safety was $300,000.
Instructions
(a) Calculate the break-even sales.
(b) Calculate the variable costs.
(c) Calculate the fixed costs.
(d) Calculate the profits at $500,000 of sales?
Contribution MarginContribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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a Breakeven sales Sales Margin of Safety Breakeven sales 600000 300000 300000 b If cont...View the full answer
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Related Book For 
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118033890
3rd Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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