Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Co. estimates that variable costs will be 70% of sales and fixed costs will total $2,379,300. The selling price of the product is $11.00,

Blossom Co. estimates that variable costs will be 70% of sales and fixed costs will total $2,379,300. The selling price of the product is
$11.00, and 750,000 units will be sold.
Using the mathematical equation
a )
image text in transcribed
image text in transcribed
Your answer is correct. Compute the break-even sales units and sales dollars. Break-even sales units 721000 units Break-even sales dollars $ 7931000 e Textbook and Media (b) X Your answer is incorrect. Compute the margin of safety in dollars and as a ratio. (Round margin of safety ratio to 1 decimal place, e.g. 52.7 $ 7181000 Margin of safety in dollars 9.57 % Margin of safety ratio Toubool and Media

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_2

Step: 3

blur-text-image_3

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

More Books

Students also viewed these Accounting questions

Question

What were your most important educational experiences?

Answered: 1 week ago

Question

Which personal relationships influenced you the most?

Answered: 1 week ago