Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Edi Audit And Control

Authors: I. Walden, A. Braganza

3rd Edition

1855542080, 978-1855542082

More Books

Students also viewed these Accounting questions