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Q: If the volume of sales is 6000000 and sales at the break-even point amount to 4800000 is the margin of safety 25?
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How do you calculate the breakeven point?

Formula for Breakeven point: Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = Sales / contribution margin Contribution margin = sales - variable cost


How do you calculate the margin of safety?

total sales - breakeven= marginal of safety


What percentage of the contribution margin is profit on units sold in excess of the breakeven point?

50%


How do you compute break even analysis?

breakeven = fixed cost / contribution margin ratiocontribution margin ratio = sales - variable cost / sales


Break even point on sales of 20 per unit variable 7 and fixed annually 173000?

Breakeven point = Fixed cost/Contribution margin Contribution margin = sales price - variable cost contribution margin = 20 - 7 = 13 Breakeven point = 173000/13 = 13307.7 units


What happens to the breakeven point when you increase the selling price?

Increase in selling price reduces the breakeven point because due to increase in price contribution margin ratio also increases.


How do you do the calculation for the break even point?

Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.


Calculation of break-even point?

Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = (Sales - Variable Cost) / Sales


Break Even Sales - Formula in Cost Accounting?

Breakeven point = Fixed Cost / Contribution margin Contribution margin = (Sales - Variable cost) / Sales


What would the sales be if the company desires a profit of 104300 in sales and the break even point in dollar sale for Rice Company is 352000 and the company contribution margin ratio is 35 percent?

Break even sales = fixed cost + desired profit / contribution margin ratio Fixed cost = breakeven point sales * contribution margin Fixed cost = 352000 * 0.35 = 123200 Breakeven point = (123200 + 104300 ) / 0.35 Breakeven point = 332857


How do you calculate the break even point for EBIT?

Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.


What is the breakeven of a fixed cost equal 300000 the price per unit equals 10 and the variable cost per unit equals 7?

Fixed cost = 300000 Contribution margin ratio = (sales - variable cost) / sales Contribution margin ratio = (10 - 7 ) / 10 Contribution margin ratio = .3 breakeven point = 300000 / .3 = 1000000