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Conbution Nargin. Break-Even Sales. Hargin of Safety Surgree rhar Kicker had following sales and cost eperience (in thousands of dollars) for May of the curene
Conbution Nargin. Break-Even Sales. Hargin of Safety Surgree rhar Kicker had following sales and cost eperience (in thousands of dollars) for May of the curene year and for May of the prior year y. ay u nt Trtal sales $43,560 $41,70 Matia (17,000) 16/00) uhrr and uuenlan (1 400 (12007 Commiwon (1.250 (1,100 Centribution manmin 2 910 Fed warhouse cos (680) (500) Fued administrative coer (4.300) (4.300 Barasch and develonment (4.200) ( 9,750) $3.780 $9.600 Opersting ncems bauawd in raseth and e In May of the grir yer, Kickar atartwd am ive cualty pragram dignd to anable it to build ratral av also ora major auemalele cumpany, The p purw rker rarted in toun cammiions, anuring that no dubio um (q. double) payments are made, The Required munded r 1 Calcuae the contribution me rMay of both yozars. Round the radios to four decimal places before cooesring to a percancaoe, For cxample. 0.88365 would 0.8837 deed as B.8 May gf surret van May of erior vear 30.1 2. Ckuiie the bre ilars far batth ywars. U to the wari duilar fnel anuT u rabos camuted in Recursmere 1 Bnund wn 37.031 X of ourent ear May of prior year 24 599 w 3. Calaace the margin of safery in sales dolars for l th vears, Round wour fnal answers ro o rosm dolse May of qurrst var ,520x May af prir yesr 17,101 4. Analvzs the difer ahon by vaur caloulationa in Rapuirwnsta 1, 2, nd 3. The sharn rise n fvad osts from the nrier vear to the ourrent vear has had a strong impact cker ell need to enure thet tiaht ceat cantrel is d since the margin of safety break even point and variable cost X much immer
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