Compute break-even point, operating leverage, margin of safety percentage. Show work. EX 4-23...
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Accounting
Compute break-even point, operating leverage, margin of safety percentage. Show work.
EX 4-23 Margin of safety OBJ. 5 If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Answer If the margin of safety for Canace Company was 20%, fixed costs were $1,875,000, and variable costs were 80% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) a. SHOW ME HOW b
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