Henderson Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales?

Question

12-03-2020
Business

contestada

Henderson Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales?

Respuesta :

Otras preguntas

During the late 1900s, what scientist challenged uniformitarianism

Which example best shows conservation of resources? A.driving a gas powered car when taking a short trip B.recycling aluminum cans and glass bottles C.using a d

Livia‘s bill for lunch came to eight dollars before tax and tip the restaurant included a 7% sales tax and she left a 15% tip what she calculated on the bill be

i need they organized and worked with the

Three forces act on a statue. Force F⃗ 1F→1 (magnitude 45.0 NN) points in the +x-direction, Force F⃗ 2F→2 (magnitude 105 NN) points in the +y-direction, and for

To be most effective, a Code of Ethics must _______________ . be drafted in a positive actions or results-based approach be drafted to specify prohibited behavi

What were the consequences of the cotton gin?

Match each of the following descriptions to the appropriate term. The total usable energy of a system The total energy of a system The total UNusable energy of

Find the equation of the line that is perpendicular to y=1/3x-3 and passes through the point (3,-2)

Find the approximate volume. Round to the hundredth when necessary.

hyderali230 hyderali230 · Answer 1 · 2020-03-16T02:02:56+01:00

Answer:

The margin of safety as a percent of sales is 25%

Explanation:

Break-even is the level of sales at which business has no profit no loss situation.

Break-even point = Fixed cost / Contribution margin ratio = $36,000 / 24% = $150,000

Margin of safety is the level of sales at which the business is safe from making loss. Margin of safety measures the profit after the break-even point.

Margin of Safety = Total sales - Break-even point = $200,000 - $150,000 = $50,000

Margin of safety to sales = ( $50,000 / $200,000 ) x 100 = 0.25 x 100 = 25%