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  • Cost ACC hmw2

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    Nguyễn Thu Trang
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    The document contains the solutions to a cost accounting homework assignment. It shows calculations to determine the target sales units needed to reach a profit target, which is 14,000 units. It also calculates the break-even point in dollars as $46,500 using a contribution margin ratio of 0.3. The margin of safety is calculated as the difference between predicted sales of $60,000 and the break-even point of $46,500, which equals $13,500.

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    The document contains the solutions to a cost accounting homework assignment. It shows calculations to determine the target sales units needed to reach a profit target, which is 14,000 units. It also calculates the break-even point in dollars as $46,500 using a contribution margin ratio of 0.3. The margin of safety is calculated as the difference between predicted sales of $60,000 and the break-even point of $46,500, which equals $13,500.

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    © All Rights Reserved
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    10 views1 page

    Cost ACC hmw2

    Uploaded by

    Nguyễn Thu Trang
    The document contains the solutions to a cost accounting homework assignment. It shows calculations to determine the target sales units needed to reach a profit target, which is 14,000 units. It also calculates the break-even point in dollars as $46,500 using a contribution margin ratio of 0.3. The margin of safety is calculated as the difference between predicted sales of $60,000 and the break-even point of $46,500, which equals $13,500.

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    © All Rights Reserved
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    of 1

    NEU:Summer 2020

    Cost Accounting
    Student ID:11175107
    Name: Tuan, Dang

    Homework#2
    1)Target sales unit=[Fixed costs+target profit after tax/(1-tax rate)]/Contribution
    margin per unit=[34,000+30,000/(1-40%)]/(8-2)=14,000 (units).

    2)
    -Break-even point in dollar=Fixed costs/Contribution margin ratio
    =15,500/0.34=46,500 ($)
    -Contribution margin ratio= (60-40)/60=0.(3)
    => Margin of safety=predicted sales-break even point in dollar
    =60*1,000-46,500=13,500 ($).

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