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Category > Accounting Posted 28 May 2017 My Price 5.00

If the margin of safety for Tri-City Company was 30%

 

 
 

 

If the margin of safety for Tri-City Company was 30%, fixed costs were $2,800,000 and variable costs were 75% of sales, what was the amount of actual sales (dollars)? (Hint:Determine the break-even in sales dollars first.)
 
 

Answers

Alpha Geek
(8)
Status NEW Posted 28 May 2017 06:05 AM My Price 5.00

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file 1495952733-1668405_1_636314601910457043_1668405.xlsx preview (152 words )
If----------- th-----------e m-----------arg-----------in -----------of -----------saf-----------ety----------- fo-----------r T-----------ri------------Cit-----------y C-----------omp-----------any----------- wa-----------s 3-----------0%,----------- fi-----------xed----------- co-----------sts----------- we-----------re -----------$2,-----------800-----------,00-----------0 a-----------nd -----------var-----------iab-----------le -----------cos-----------ts -----------wer-----------e 7-----------5% -----------of -----------sal-----------es,----------- wh-----------at -----------was----------- th-----------e a-----------mou-----------nt -----------of -----------act-----------ual----------- sa-----------les----------- (-----------dol-----------lar-----------s)?----------- (H-----------int-----------:De-----------ter-----------min-----------e t-----------he -----------bre-----------ak------------eve-----------n i-----------n s-----------ale-----------s d-----------oll-----------ars----------- fi-----------rst-----------.)B-----------rea-----------k e-----------ven----------- sa-----------les----------- in----------- Do-----------lla-----------rs -----------=Fi-----------xed----------- Co-----------stC-----------ont-----------rib-----------uti-----------on -----------Mar-----------gin----------- Ra-----------tio-----------It -----------is -----------Giv-----------en -----------tha-----------t V-----------ari-----------abl-----------e C-----------ost----------- ra-----------tio----------- to----------- sa-----------les----------- is----------- 75----------- % -----------the-----------ref-----------ore-----------, c-----------ont-----------rib-----------uti-----------on -----------mar-----------gin----------- ra-----------tio----------- is----------- 25-----------%(1-----------00%------------75-----------%) -----------=25-----------%Ma-----------rgi-----------n o-----------f s-----------afe-----------ty -----------Rat-----------io ----------- ----------- ----------- =M-----------arg-----------in
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