What is the margin of safety in dollars and as a

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What is the margin of safety in dollars and as a ratio?(Round ratio to 2 decimal places, e.g.12.25%.)Margin of safety$71500Margin of safety ratio68.75 %Your answer is correct.
If the company wishes to increase its total dollar contribution margin by 30% in 2013, by how muchwill it need to increase its sales if all other factors remain constant?(Round answer to 0 decimalplaces, e.g. 2,520.)
Problem 18-2AJorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 centsper 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2014,management estimates the following revenues and costs.Sales$ 1,800,000Selling expenses—variable$ 70,000Direct materials430,000Selling expenses—fixed65,000Direct labor360,000Administrative expenses—variable20,000Manufacturing overhead—variable380,000Administrative expenses—fixed60,000Manufacturing overhead—fixed280,000Your answer is correct.Prepare a CVP income statement for 2014 based on management’s estimates.0
Your answer is correct.Calculate variable cost per bottle.(Round variable cost per bottle to 2 decimal places, e.g.0.25.)Variable cost per bottle$.35Your answer is correct.Compute the break-even point in (1) units and (2) dollars.(Round answers to 0 decimal places,e.g. 1,225.)(1)Compute the break-even point2700000 units(2)Compute the break-even point$1350000Your answer is correct.Compute the contribution margin ratio and the margin of safety ratio.(Round answers to 0decimal places, e.g. 25%.)Contribution margin ratio30%Margin of safety ratio25%Your answer is correct.Determine the sales dollars required to earn net income of $ 180,000 .(Round answers to 0decimal places, e.g. 1,225.)Required sales dollars$1950000Problem 18-3AYour answer is correct.Dousmann Corp.’s sales slumped badly in 2014. For the first time in its history, it operated at a loss.The company’s income statement showed the following results from selling 500,000 units of product:sales $2,500,000; total costs and expenses $2,600,000; and net loss $100,000. Costs and expensesconsisted of the amounts shown below.TotalVariableFixedCost of goods sold$2,140,000$1,540,000$600,000Selling expenses250,00092,000158,000Administrative expenses210,00068,000142,000$2,600,000$1,700,000$900,000Management is considering the following independent alternatives for 2015.1.Increase unit selling price 20% with no change in costs, expenses, and sales volume.2.Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total

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Term
Spring
Professor
AliceChu
Tags
Managerial Accounting, Taxes, Contribution Margin, Homework, Answers, Homework Answers, Chapter Homework

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