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  • Cost E20-6 & E20-7

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    Jon San
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    The document shows financial information for two companies, E20-6 and E20-7. E20-6 has a total planned revenue of $2,000,000 and break-even point of $1,500,000, giving it a margin of safety of $500,000 and ratio of 0.25. E20-7 has fixed costs of $9,300, margin of safety and contribution margin ratios of 25% and 62% respectively, with calculations showing its break-even sales, actual sales, and monthly profit.

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    cost e20-6 & e20-7

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    The document shows financial information for two companies, E20-6 and E20-7. E20-6 has a total planned revenue of $2,000,000 and break-even point of $1,500,000, giving it a margin of safety of $500,000 and ratio of 0.25. E20-7 has fixed costs of $9,300, margin of safety and contribution margin ratios of 25% and 62% respectively, with calculations showing its break-even sales, actual sales, and monthly profit.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    18 views1 page

    Cost E20-6 & E20-7

    Uploaded by

    Jon San
    The document shows financial information for two companies, E20-6 and E20-7. E20-6 has a total planned revenue of $2,000,000 and break-even point of $1,500,000, giving it a margin of safety of $500,000 and ratio of 0.25. E20-7 has fixed costs of $9,300, margin of safety and contribution margin ratios of 25% and 62% respectively, with calculations showing its break-even sales, actual sales, and monthly profit.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    E20-6

    Total Planned Revenue $ 2,000,000


    Total BEP Revenue $ 1,500,000
    MARGIN OF SAFETY $ 500,000

    MARGIN OF SAFETY RATIO 0.25


    = Margin of Safety
    Total Planned Revenue

    E20-7

    Fixed Cost $ 9,300


    Margin Of Safety Ratio 25%
    Contribution Margin Ratio 62%

    1) Fixed Cost $ 9,300


    Contribution Margin Ratio 62%
    Break-Even Sales $ 15,000

    2) Break-Even Sales $ 15,000


    1-MoS Ratio 75%
    Actual Sales $ 20,000

    3) Actual Sales $ 20,000


    Margin Of Safety Ratio 25%
    Contribution Margin Ratio 62%
    Profit for The Month $ 3,100

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