Company M Had Fixed Costs of $262,500,variable Costs of $625,000,and

question 92

Essay

Company M had fixed costs of $262,500,variable costs of $625,000,and actual sales of $1,000,000.If the company has a break-even point at $700,000 in sales revenue,determine (a)the margin of safety expressed in dollars, (b)the margin of safety expressed as a percentage of sales, (c)the contribution margin ratio,and (d)the operating income.

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Definitions:

Mental Deficiencies

A term describing limitations in cognitive functioning and behavioral abilities, ranging from mild to severe, that can affect an individual's day-to-day life and learning.

Adjudicated Insane

A legal determination made by a court that an individual lacks the mental capacity to manage their own affairs or to understand the nature of a criminal act.

Voidable

A term describing a legal contract or action that may be nullified or terminated at the discretion of one or both parties involved.

Covenant Not to Compete

An agreement where one party agrees not to enter into or start a similar profession or trade in competition against another party.