Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Pharoah Company sells sports decals that can be personalized with a player's name, a team name, and a jersey number for $ 9.00 each.

image text in transcribed

image text in transcribed

The Pharoah Company sells sports decals that can be personalized with a player's name, a team name, and a jersey number for $ 9.00 each. Pharoah's variable costs are the $ 2.70 it pays its supplier for each decal and $ 0.70 in operating costs to personalize and sell each decal. The results of last month's operations are as follows: Sales revenue $ 22,500 Cost of goods sold 6,750 Gross profit 15,750 Operating expenses 5,838 Operating income $ 9,912 What is Pharoah's margin of safety? (Round answers to O decimal places, e.g. 25,000.) Margin of safety units $ Margin of safety

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamental Accounting Principles

Authors: John Wild, Ken Shaw, Barbara Chiappetta

22nd edition

9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275

Students also viewed these Accounting questions