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montgomeryaevans
11.07.2019 •
Business
Em sales had $2,200,000 in sales last month. the contribution margin ratio was 30% and operating profits were $180,000. what is em's margin of safety is sales dollars? $480,000. $600,000. $2,020,000. cannot determine with the information given.
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Ответ:
Calculation of margin of safety in sales dollars:
We are given that Em sales had $2,200,000 in sales last month and the contribution margin ratio was 30% and operating profits were $180,000.
We can calculate fixed cost with the help of following formula:
Fixed Costs =( Sales * contribution margin ratio) - operating profits
= (2200000*30%)-180000
= $ 480,000
Now we can calculate Breakevens Dollar Sales as follows:
Breakevens Dollar Sales = Fixed Cost / Contribution Margin %
= 480,000/30%
= $1,600,000
Finally, we can calculate the margin of safety in sales dollars as follows:
The margin of safety in sales dollars = Actual Sales – Breakevens sales
= 2200000-1600000
=$600,000
Hence, Margin of safety in sales dollars is $600,000
Ответ:
Bruv- not cool man not cool smh. WE ALL EQUAL HERE...STOP EXCLUDING OTHER PEOPLE