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Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year,...
Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,930,000 pages at a price of $0.1 each in the coming year. Product costs include:
Direct materials $0.015
Direct labor $0.005
Variable overhead $0.002
Total fixed overhead $166,020
There is no variable selling expense; fixed selling and administrative expenses total $36,000.
Required: In your computations that involve the contribution margin ratio, do not round the ratio.
1. Calculate the break-even point in units.
2. Calculate the break-even point in sales revenue. $
3. Calculate the margin of safety in units for the coming year.
4. Calculate the margin of safety in sales revenue for the coming year.
5. What if the total selling and administrative expenses are reduced to $12,600?
Recalculate the following:
a. Break-even point in units
b. Break-even point in sales revenue $
c. Margin of safety in units for the coming year
d. Margin of safety in sales revenue for the coming year
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year,...
Break-Even Units and Sales Revenue: Margin of Safety
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Direct materials
$0.015
Direct labor
$0.005
Variable overhead
$0.002
Total fixed overhead
$183,400
There is no variable selling expense; fixed selling and
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Required:
In your computations that involve the contribution margin ratio,
do not round the ratio.
1. Calculate the...
Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year,...
Break-Even Units and Sales Revenue: Margin of Safety
Dupli-Pro Copy Shop provides photocopying service. Next year,
Dupli-Pro estimates it will copy 2,990,000 pages at a price of
$0.06 each in the coming year. Product costs include:
Direct materials
$0.009
Direct labor
$0.003
Variable overhead
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Total fixed overhead
$83,960
There is no variable selling expense; fixed selling and
administrative expenses total $42,000.
Required:
In your computations that involve the contribution margin ratio,
do not round the ratio.
1. Calculate the...
Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 3,050,000 pages at...
Dupli-Pro Copy Shop provides photocopying service. Next year,
Dupli-Pro estimates it will copy 3,050,000 pages at a price of $0.1
each in the coming year. Product costs include:
Direct materials
$0.015
Direct labor
$0.005
Variable overhead
$0.002
Total fixed overhead
$165,480
There is no variable selling expense; fixed selling and
administrative expenses total $42,000.
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units.
units
2. Calculate the break-even point in sales
revenue.
$
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Contribution Margin, Break-Even Units, Break-Even Sales, Margin
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Aldovar Company produces a variety of chemicals. One division
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Sales (203,000 units @ $70)
$14,210,000
Total variable cost
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Contribution margin
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Total fixed cost
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Operating income
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Break-Even in Sales Revenue, Variable-Costing Ratio,
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Sales
$1,240,000
Less: Variable expenses
706,800
Contribution margin
$533,200
Less: Fixed expenses
425,000
Income before taxes
$108,200
Less: Income taxes
43,280
Net income
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Sales
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$41.00
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Total fixed cost
1,378,190
Operating income
$ 210,150
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a. If Canace Company, with a break-even point
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1. $
2. %
b. If the margin of safety for Canace Company
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