Question
1.A company had total sales of $250,000 and fixed expenses totaling $130,000. If the company is operating at the break-even point, calculate its total variable
1.A company had total sales of $250,000 and fixed expenses totaling $130,000. If the company is operating at the break-even point, calculate its total variable expenses?
2. Alpha Company's sales for the year amounted to $220,000. Its break-even sales were $190,000. Beta Company's break-even sales were $260,000. Its sales for the year amounted to $300,000. Which company had the larger safety margin?
3. Petco Company's fixed costs amounted to $30,000. If its contribution margin for the year amounted to $80,000, calculate its degree of operating leverage
4.If a company is operating at the break-even point (select all correct answers if more than one is correct):
a) its contribution margin will be equal to its fixed expenses. b) its margin of safety will be equal to zero. c) its total expenses will be equal to its sales revenue. d) its selling price will be equal to its variable expense per unit.
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