Question
The sales and cost data for two companies in the transportation industry are as follows: X CompanyY CompanyAmountPercentAmountPercentSales$136,000100.00$136,000100.00Variable costs81,60060.0040,80030.00Contribution margin54,40040.0095,20070.00Fixed costs36,40072,450Operating income ( B )$18,000$22,750
The sales and cost data for two companies in the transportation industry are as follows:
X CompanyY CompanyAmountPercentAmountPercentSales$136,000100.00$136,000100.00Variable costs81,60060.0040,80030.00Contribution margin54,40040.0095,20070.00Fixed costs36,40072,450Operating income (B)$18,000$22,750
YCompany'smargin of safety (MOS) in sales dollars (rounded) is:
Multiple Choice
- $45,357.
- $43,700.
- $32,500.
- $24,588.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Management And Cost Accounting
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan
7th Edition
1292232668, 978-1292232669
