Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rossi Incorporated makes track suits that sell for $50 each. Actual sales are $642,500. Management estimates that fixed costs will total $205,600 and variable

 

Rossi Incorporated makes track suits that sell for $50 each. Actual sales are $642,500. Management estimates that fixed costs will total $205,600 and variable costs will be $30 per unit this coming year. Calculate the break-even point in sales dollars using the contribution margin ratio. (Round contribution margin ratio to 4 decimal places, e.g. 15.2964% and final answer to 0 decimal places, e.g. 125.) Break-even point in dollars $ Calculate the margin of safety in dollars and the margin of safety ratio. (Round margin of safety in dollars to the nearest whole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25%.) Margin of safety Margin of safety ratio % Calculate the sales dollars required to earn an operating income of $208,000. (Round answer to the nearest whole dollar, e.g. 5,275.) Required sales in dollars

Step by Step Solution

3.46 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

Selling Price Per unit Varaibel Expense Per unit Fixed Ex... 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

Managerial Accounting

Authors: Ramji Balakrishnan, Konduru Sivaramakrishnan, Geoff B. Sprinkle

2nd edition

1118385381, 978-1118385388

More Books

Students also viewed these Accounting questions