Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company had a margin of safety of $381,000 last month, with sales revenue of $1,270,000 and fixed costs of $222,250. Required: a. What
A company had a margin of safety of $381,000 last month, with sales revenue of $1,270,000 and fixed costs of $222,250. Required: a. What are break-even sales? b. What is the contribution margin ratio? c. How much profit did the company earn last month? d. How much would sales have to be for the company to earn a profit of $381,000? Complete this question by entering your answers in the tabs below. Required A Required B What are break-even sales? Break-Even Sales Required C Required D Required A Required B Required C What is the contribution margin ratio? Contribution Margin Ratio Required D % Required A Required B Required C Required D How much profit did Akron earn last month? Profit Earned Required A Required B Required C Required D How much would sales have to be for Akron to earn a profit of $381,000? Total Required Sales
Step by Step Solution
★★★★★
3.52 Rating (152 Votes )
There are 3 Steps involved in it
Step: 1
Part a Sales revenue 1270000 Less Margin of safety 381000 Breakeven sales 889000 Pa...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started