Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 07, 2023

Fontaine Corporation has a selling price of $10 and variable costs of $5.00 per unit. When 14,000 units are sold, profits equal $47,500. What is

Fontaine Corporation has a selling price of $10 and variable costs of $5.00 per unit. When 14,000 units are sold, profits equal $47,500.

What is the margin of safety?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Fixed Cost Total contribution margin Profit 105 14000 47500 70... 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

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

Recommended Textbook for

Horngrens Cost Accounting A Managerial Emphasis

Authors: Srikant M. Datar, Madhav V. Rajan

17th Edition

0135628474, 9780135628478

More Books

Students also viewed these Accounting questions

Question

★★★★★

1. Total contribution margin is defined as A. selling price times units sold. B. cost to produce goods times units sold. C. total sales revenues less total variable costs. D. total variable costs...

Answered: 1 week ago

Question

★★★★★

Blackthorns Ltd produces a single product, which has a selling price of 10 per unit and a variable cost of production of 4 per unit. The fixed costs of production are 55,000. In addition, the company...

Answered: 1 week ago

Question

★★★★★

The vice-president of sales and marketing, Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecasted sales. The board of directors is very supportive...

Answered: 1 week ago

Question

★★★★★

. The following is given: EBIT = $50 000, Q=60 000, P =$6, V = $4. a) If sales should increase by 10%, by what percent would EBIT increase? b) If sales should increase by 10%, for what interest...

Answered: 1 week ago

Question

★★★★★

Not all organizations conduct a formal post-project review. Provide an argument for why you think organizations should include such a step as part of their project closing.

Answered: 1 week ago

Question

★★★★★

Find the center, foci, vertices, asymptotes, and radius, as appropriate, of the conic section. x 2 - y 2 - 2x + 4y = 4

Answered: 1 week ago

Question

★★★★★

3.19 LCD TVs, continued Refer to Exercise 3.18. Suppose we assume that the relationship between x and y is linear. a. Find the correlation coefficient, r. What does this value tell you about the...

Answered: 1 week ago

Question

★★★★★

Selected information relating to the fixed overhead costs of Westwood Company for the most recent year is given below: Activity: Number of units produced . . . . . . . . . . . . . . . . . . . 9,500...

Answered: 1 week ago

Question

★★★★★

Assume that the following are independent situations recently reported in the Wall Street Journal. 1. General Electric (GE) 7% bonds, maturing January 28, 2015, were issued at 114.86. 2. Boeing 7%...

Answered: 1 week ago

Question

★★★★★

1-Jesse wants to see a new corporate goal that refers to our proposed training activity. She also wants to know whether the change will require a change in SCRs mission statement. 2-Jesse wants my...

Answered: 1 week ago

Question

★★★★★

[The following information applies to the questions displayed below.)] Data for Hermann Corporation are shown below: Selling price Variable expenses Per Unit $ 75 Percent of Sales 100% 51...

Answered: 1 week ago

Question

★★★★★

HBS Simulation: Quality Analytics Challenge 2 How did you determine when to make a machine adjustment (re-center the process mean) or make a labor substitution (re-center the process standard...

Answered: 1 week ago

Question

★★★★★

m DIRECTIONS: Read the Rossano Ferretti interview to answer the questions below on how hm ' productivity led to higher pay as a hairstylist. The average Professional soccer player gets paid $3...

Answered: 1 week ago

Question

★★★★★

Researchers can better understand the distribution of a categorical variable by counting the number of individuals or cases in each category. This is referred to as the ______. Explain briefly

Answered: 1 week ago

Question

★★★★★

At another local coffee shop, wait times for a cup of plain coffee are normally distributed with a mean of $125 seconds and a standard deviation of 22 seconds. What percentage of wait times for a cup...

Answered: 1 week ago

Question

★★★★★

Luisa treats rice and wheat as perfect complements and spends all her food budget of $24/wk on these foodstuffs. If rice costs $3/lb, draw Luisa's price-consumption curve for wheat. Instructions: 1....

Answered: 1 week ago

Question

★★★★★

In about 200 words (total), answer the following questions by Wednesday night: 1. Briefly explain the difference between liquidity, solvency, and profitability analysis. 2. What is the advantage of...

Answered: 1 week ago

Question

★★★★★

Refer to Example 9.15. Add the following functionality to this program: Allow the user to enter the cost of a gallon of gas on each trip and use a function, Cost() to calculate the cost of purchasing...

Answered: 1 week ago

Question

★★★★★

Pharmassist, Inc., a distributor of special pharmaceutical products, operates at capacity and has three main market segments: a. General supermarket chains b. Drugstore chains c. Mom-and-pop...

Answered: 1 week ago

Question

★★★★★

Chicago, Inc., has two divisions, A and B, that manufacture expensive bicycles. Division A produces the bicycle frame, and division B assembles the rest of the bicycle onto the frame. There is a...

Answered: 1 week ago

Question

★★★★★

Which of the following is a TRUE statement regarding the treatment of scrap by a firm? a. Scrap is always allocated to a specific job. b. Scrap is separated between normal and abnormal scrap. c. When...

Answered: 1 week ago

Question

★★★★★

At January 1, 2005, the available-for-sale securities portfolio held by Howe Corporation consisted of the following investments: 1. 2,500 shares of Nester common stock purchased for $42 per share. 2....

Answered: 1 week ago

Question

★★★★★

A monopolistic competitive firm has demand and cost curves given by: QD = 1000 - 2P TC = 5,000 + 50Q a. At what price should this firm sell its product? b. What do you think would happen as the firm...

Answered: 1 week ago

Question

★★★★★

Georgia Company has condensed income statements as follows: REQUIRED: Prepare a horizontal analysis of Georgia Company's income statements. Comment on the trends, both favorable and unfavorable.

Answered: 1 week ago

Previous Question Next Question