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Need some help with the margin of safety ratio, thanks! The following single-column CVP income statements are available for Sunland Company and Carla Vista Company.
Need some help with the margin of safety ratio, thanks!
The following single-column CVP income statements are available for Sunland Company and Carla Vista Company. Sunland Company Carla Vista Company Sales $ 470,000 $ 470,000 Variable costs 258,500 188,000 Contribution margin 211,500 282,000 Fixed costs 159,800 253,800 Net income $ 51,700 $ 28,200 (a1) Your answer is correct. Calculate contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Sunland Company 0.45 Carla Vista Company 0.60 eTextbook and Media Attempts: 1 of 5 used (a2) Your answer is correct. Compute the break-even point in sales dollars for each company. (Round answers to O decimal places, e.g. 5,125.) Break-even Point Sunland Company 355111 Carla Vista Company $ 423000(a3) Compute margin of safety ratio for each company. (Round answers to 3 decimal places, e.g. 0.321.) Margin of Safety Ratio Sunland Company Carla Vista CompanyStep by Step Solution
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