The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 402 Weeks Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Rezler Company’s controller prepared the following budgeted income statement for the coming year:
Sales …………………………………….$315,000
Less: Variable expenses ………………….141,750
Contribution margin …………………….$173,250
Less: Fixed expenses ……………………...63,000
Operating income ………………………$110,250
Required:
1. What is Rezler’s variable cost ratio? What is its contribution margin ratio?
2. Suppose Rezler’s actual revenues are $30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement.
3. How much sales revenue must Rezler earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer.
4. What is Rezler’s expected margin of safety?
5. What is Rezler’s margin of safety if sales revenue is $280,000?
Hel-----------lo -----------Sir-----------/Ma-----------dam----------- Â----------- -----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------sol-----------uti-----------on.-----------Ple-----------ase----------- pi-----------ng -----------me -----------on -----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be----------- ca-----------tch-----------