Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If the margin of safety for Watkins Company was 40%,fixed costswere $1,867,200, andvariable costswere 60% of sales, what was the amount of actual sales (dollars)?

If the margin of safety for Watkins Company was 40%,fixed costswere $1,867,200, andvariable costswere 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

Financial Accounting An Introduction

Authors: Pauline Weetman

4th Edition

0273703404, 978-0273703402

More Books

Students also viewed these Accounting questions

Question

What is meant by a pricing decision?

Answered: 1 week ago

Question

Create a budget on a spreadsheet with $45,000 a year

Answered: 1 week ago