The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $ 136,000 100.00 $ 136,000 100.00 Variable costs 81,600 60.00 40,800 30.00 Contribution margin 54,400 40.00 95,200 70.00 Fixed costs 36,400 72,450 Operating income (πB) $ 18,000 $ 22,750 The annual breakeven point in sales dollars for X Company is: Multiple Choice $103,857. $91,000. $64,000. $111,769. $92,65

The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $ 136,000 100.00 $ 136,000 100.00 Variable costs 81,600 60.00 40,800 30.00 Contribution margin 54,400 40.00 95,200 70.00 Fixed costs 36,400 72,450 Operating income (πB) $ 18,000 $ 22,750 The annual breakeven point in sales dollars for X Company is: Multiple Choice $103,857. $91,000. $64,000. $111,769. $92,65

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $ 138,000 100.00 $ 138,000 100.00 Variable costs 82,800 60.00 41,400 30.00 Contribution margin 55,200 40.00 96,600 70.00 Fixed costs 36,450 72,500 Operating income (πB) $ 18,750 $ 24,100 Y Company's margin of safety (MOS) in sales dollars (rounded) is:
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	X Company		Y Company
	Amount		Percent	Amount	Percent
Sales	$	136,000		100.00	$	136,000	100.00
Variable costs		81,600		60.00		40,800	30.00
Contribution margin		54,400		40.00		95,200	70.00
Fixed costs		36,400				72,450
Operating income (π_B)	$	18,000			$	22,750