Margin of SafetyJake's Sub Shop sells large sub sandwiches for $8.75. Unit variable expenses total $3.85. The break-even sales in units is 5,250 and budgeted sales in units is 9,500.Round answers to the nearest dollar, if applicable.What is the margin of safety in dollars?$0What are Jake's fixed costs?$0

Marging of safety is basically the difference between total sales and break-even sales.Break-even…

Answered: Margin of Safety Jake's Sub Shop sells…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 62P

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Homeward Hardware buys cat litter for $6 less 20% per baq. The store's overhead is 45% of cost and the owner requires profit of 20% of cost. 1. For how much should the bags be sold? 2. What is the amount of markup included in the selling price? 3. What is the rate of markup based on selling price? 4. What is the rate of markup based on cost? 5. What is the break-even price? 6. What operating profit or loss is made if a bag is sold for $6?
Moe’s pizza shop sells a large pizza for $12.25. Unit variable expenses total $6.50. The breakeven sales in units is 7,000 and budgeted sales in units is 8,500. What is the margin of safety in dollars?
Computing margin of safety Robbie’s Repair Shop has a monthly target profit of $31,000. Variable costs are 20% of Sales, and monthly fixed costs are $19,000. Requirements Compute the monthly margin of Safety in dollars if the shop achieves its income goal. Express Robbie’s margin of safety, as a percentage of margin Sales. Why would Robbie’s management want to know the shop’s margin of safety?
Hyde's Headphones sells deluxe headphones for $55 each. Unit variable expenses total $50. The breakeven sales in units is 3,000 and budgeted sales in units is 4,134. What is the margin of safety in dollars? O A. $62,370 O B. $1.134 O C. $392.370 O D. $20.62
Sally's Fries sells four large fries for every three small ones. A small fry sells for $2 with a variable cost of $0.75. A large fry sells for $6 with a variable cost of $1.50 What is the weighted average contribution margin? Question 6 options: $3.11 $5.46 $9.67 $3.78
Homoward Hardware buys cat liter for $6 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20% of cost (a) (b) (c) (d) (e) (7) For how much should the bags be sold? What is the amount of markup included in the selling price? What is the rate of markup based on selling price? What is the rate of markup based on cost? What is the break-even price? What operating profit or loss is made if a bag is sold for $7 509
XYZ sari-sari store sells a case of soft drink at 360.00. The store's overhead expenses are 40% of the cost and the owner wants a profit that is 25% of the cost. How much is the cost of one case of soft drink?
Break-even Analysis problem. Using the following information, answer the questions below Mama's Pizzeria only sells pepperoni pizzas. The restaurant insurs the following expenses: Each pizza sells for $10/each. Fixed Costs per month General Labor Rent Utilities Variable Costs per pizza 0.50 2.50 2.00 0.50 1,500 Flour 3,000 Cheese 450 Pepperoni Sauce 1. What is the contribution margin? 2. How many pizzas must the restaurant sell in order to break even every month?
Calculating breakeven point in units, contribution margin given Mackler, Inc. sells a product with a contribution margin of $50 per unit. Fixed costs are $8,000 per month. How many units must Mackler sell to break even?
Computing breakeven sales No Slip Co. produces sports socks. The company has fixed costs of $91,080 and variable costs of $0.81 per package. Each package sells for $1.80. Requirements Compute the contribution margin per package and the contribution margin ratio. (Round your answers to two decimal places.) Find the breakeven point in units and in dollars using the contribution margin approach.
Awanita Enterprises sells computer flash drives for $2.81 per unit. Unit variable cost is $0.07. The breakeven point in units is 3,000, and expected sales in units are 4,500. What is the margin of safety in dollars? OA. $105 OB. $8,430 OC. $4,215 O D. $4,110 ...
Please I need help with the letters D and E, A, B, and C that are already answered. Question 5 Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs per baby hamper of $100. The company’s monthly fixed expenses are $200,000. Required: a) What is the company’s break-even point in units? b) What is the company’s margin of safety in dollars, assume sales is expected to be $800,000? c) How many baby hampers will Micol & Co. Ltd need to sell (in sales dollars) in order to realize a target profit of $500,000? d) Construct a contribution margin income statement for the first month (in July) that reflects $2,400,000 in sales revenue for Micol & Co. Ltd. e) Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months? Please show your working (All Steps).

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