What is the margin of safety in dollars and as a

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
$ 7150
0
Margin of safety ratio 68.75 %
Your answer is correct.

If the company wishes to increase its total dollar contribution margin by 30% in 2013, by how much
will it need to increase its sales if all other factors remain constant? (Round answer to 0 decimal
places, e.g. 2,520.)
Problem 18-2A
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents
per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2014,
management estimates the following revenues and costs.
Sales $ 1,800,000 Selling expenses—variable $ 70,000
Direct materials 430,000 Selling expenses—fixed 65,000
Direct labor 360,000 Administrative expenses—variable 20,000
Manufacturing overhead—variable 380,000 Administrative expenses—fixed 60,000
Manufacturing overhead—fixed 280,000
Your 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 $ .35
Your 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 point 2700000 units
(2) Compute the break-even point
$ 135000
0
Your answer is correct.
Compute the contribution margin ratio and the margin of safety ratio. (Round answers to 0
decimal places, e.g. 25%.)
Contribution margin ratio
3
0
%
Margin of safety ratio
2
5
%
Your answer is correct.
Determine the sales dollars required to earn net income of $ 180,000 . (Round answers to 0
decimal places, e.g. 1,225.)
Required sales dollars
$ 195000
0
Problem 18-3A
Your 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 expenses
consisted of the amounts shown below.
Total Variable Fixed
Cost of goods sold $2,140,000 $1,540,000 $600,000
Selling expenses 250,000 92,000 158,000
Administrative expenses 210,000 68,000 142,000
$2,600,000 $1,700,000 $900,000
Management 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