• 2022-06-04
    Themargin of safety:
    A: equals planned unit sales less break-even unitsales
    B: showshow actual sales differ from planned sales
    C: isthe sales price minus all the fixed expenses
    D: isthe same as contribution margin
  • A

    内容

    • 0

      Falls Company has budgeted sales of $120,000 based on 80,000 units. The margin of safety is $1,000. What is the break-even point in dollars?

    • 1

      Net sales is calculated by A: subtracting cost of sales from sales. B: subtracting sales returns and sales discounts from sales. C: subtracting sales returns, cost of sales, and sales discounts from sales. D: subtracting gross profit from sales.

    • 2

      Thebreak-even point is the level of sales at which revenue equals fixed costs.

    • 3

      The gross profit percentage is calculated as: A: cost of goods sold divided by net sales revenue. B: net sales revenue minus gross profit on sales. C: net sales revenue minus cost of goods sold. D: gross profit divided by net sales revenue.

    • 4

      A retail business buys and sells product X. The variable cost for product X is $3 per unit and the fixed costs of the business are $75,000. The selling price is $7 per unit.What is the break-even sales volume of product X?______