Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. margin of safety a. if canace company, with a brea

Margin of Safety a. If Canace Company, with a break-even point at $336,300 of sales,...

50.1K

Verified Solution

Question

Accounting

Margin of Safety

a. If Canace Company, with a break-even point at $336,300 of sales, has actual sales of $590,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number.

1. $

2. %

b. If the margin of safety for Canace Company was 25%, fixed costs were $1,621,875, and variable costswere 75% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

The experiment data in below table was to evaluate the effects of three variables on invoice...

Biology
1.2K views

Match the cell junction with its description An impermeable junction formed by the fusion of...

Physics
1.2K views

26 Calculate the intensity of the sound waves from an electric guitar s amplifier at...

Basic Math
1.2K views

Determine length CE for the similar triangles shown in Figure 1 10 m B C...

Calculus
1.2K views

official Miami Dade College Homepage 9 211 5 Part 1 of 3 Q 47 Part...

Algebra
1.2K views

Find the power Write the answer in rectangular form 2 2 3 4 6 8...

Accounting
1.2K views

Nate and Ruth Fischer are married and file a joint return. They have three dependent...

Accounting
1.2K views

Assume Avaya contracted to provide a customer with internet infrastructure for $2,700,000. The project began...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] On...

Finance
1.2K views

23. Home Depots Equity Multiplier and Net Profit (Profit Margin) ratios in 2018 are 30.63...

Finance
1.2K views

Under the CML, a lending portfolio: Will have an expected retum that is greater...

Finance
1.2K views

Hudson has a margin account with $17,400 in available cash. The initial margin is 70%...