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Kearney company, operating at full capacity sold 400,000 units at $246.60 during 20Y5. Sales:$98,640,000 Cost of goods sold:44,500,000 Gross profit:$54,140,000 considering plant expansion an increase
Kearney company, operating at full capacity sold 400,000 units at $246.60 during 20Y5. Sales:$98,640,000 Cost of goods sold:44,500,000 Gross profit:$54,140,000 considering plant expansion an increase of $8,631,000. The expansion will increase fixed costs by $3,600,000 but will not affect the relationship between sales and variable costs.
calculate the Margin of safety for 20Y5 in percentage.
calculate Margin of safety under the proposed program assuming 20Y5 sales in percentage.
Survey of accounting
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