Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pharoah Co. estimates that variable costs will be 70% of sales and fixed costs will total $2,178,000. The selling price of the product is $10.00,

Pharoah Co. estimates that variable costs will be 70% of sales and fixed costs will total $2,178,000. The selling price of the product is $10.00, and 760,000 units will be sold. Using the mathematical equation, (a) Your answer is correct. Compute the break-even sales units and sales dollars. Break-even sales units 726000 units Break-even sales dollars $ 7260000 (b) Compute the margin of safety in dollars and as a ratio. (Round margin of safety ratio to 1 decimal place, e.g. 52.7.) Margin of safety in dollars Margin of safety ratio $ (c) eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above

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

Cost Accounting A Managerial Emphasis 1

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

15th Edition

0133803813, 978-0133803815

More Books

Students also viewed these Accounting questions

Question

Does it exceed two pages in length?

Answered: 1 week ago

Question

Does it avoid typos and grammatical errors?

Answered: 1 week ago