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PMZ Corporation manufactured and sold 1200 pcs of Product A for the year 2020. The variable and fixed costs for 2020 are indicated in
PMZ Corporation manufactured and sold 1200 pcs of Product A for the year 2020. The variable and fixed costs for 2020 are indicated in the table. PMZ pays its Income Tax based on the following scheme: Corporations pay a fixed 5,000 for the first PHP50,000 income and 12% in excess thereof. The NIAT of PMZ for 2020 is PHP 97,096.00. Direct materials used Direct labor Supervisory salaries Indirect materials and supplies Plant utilities (other than power to run plant equipment) Power to run plant equipment Depreciation on plant and equipment (SL basis only) Property taxes on building 25,200.00 46,500.00 11,100.00 8,000.00 9,600.00 7,100.00 4,800.00 6,500.00 Assuming that the performance of PMZ corporation is the same for 2021, calculate the Margin of Safety in Percentage. Express up to 2 decimal places and indicate % sign in your answer. Two clues, first, if the BEP has decimal places, round it up. Second, margin of safety is the ratio of the difference between Units Sold and BEP to BEP. It measures how far the company is from BEP. Questions Calculate the Margin of Safety in Percentage. Possible Scores 10
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To calculate the Margin of Safety MOS in percentage we need to determine the BreakEven Point BEP and ...Get Instant Access to Expert-Tailored Solutions
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