Question
Sunland Incorporated makes track suits that sell for $70 each. Actual sales are $700,000. Management estimates that fixed costs will total $224,000 and variable costs
Sunland Incorporated makes track suits that sell for $70 each. Actual sales are $700,000. Management estimates that fixed costs will total $224,000 and variable costs will be $42 per unit this coming year.
(a)
Calculate the break-even point in sales dollars using the contribution margin ratio. (Round contribution margin ratio to 6 decimal places, e.g. 15.296465% and final answer to 0 decimal places, e.g. 125.)
Break-even point in dollars | $enter the break-even point in dollars rounded to 0 decimal places |
(b)
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 | $enter the margin of safety in dollars rounded to the nearest whole | ||
---|---|---|---|
Margin of safety ratio | enter the margin of safety ratio in percentages rounded to 2 decimal places | % |
(c)
Calculate the sales dollars required to earn an operating income of $179,200. (Round answer to the nearest whole dollar, e.g. 5,275.)
Required sales in dollars | $enter the required sales in dollars rounded to the nearest whole |
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