Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a.If Canace Company, with a break-even point at $407,100 of sales, has actual sales of $690,000, what is the margin of safety expressed (1) in

a.If Canace Company, with a break-even point at
$407,100 of sales, has actual sales of $690,000, what is the margin of safety expressed (1) in dollars and (2) as
a percentage of sales
b. If the margin of safety for Canace Company was
40%, fixed costs were $1,689,600, and variable costs
were 60% of sales, what was the amount of actual sales
(dollars)?
image text in transcribed
a. If Canace Company, with a break-even point at $407,100 of sales, has actual sales of $690,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. \$ 2. \% b. If the margin of safety for Canace Company was 40%, fixed costs were $1,689,600, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $

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

Internal Audit Handbook Management With The SAP Audit Roadmap

Authors: Henning Kagermann, William Kinney, Karlheinz Küting, Claus-Peter Weber, Z. Keil, C. Boecker, J. Busch, O. Bussiek, M. H. Christ, P. Eckes, M. Falk, P. S. Greenberg, B. Reichert, M. Wolf

2008th Edition

3642430392, 978-3642430398

More Books

Students also viewed these Accounting questions