Cunningham Industries reported actual sales of $2,000,000, and fixed costs of $510,000. The contribution margin ratio is

Question:

Cunningham Industries reported actual sales of $2,000,000, and fixed costs of $510,000.
The ratio is 30%.
Compute the margin of safety in dollars and the margin of safety ratio.
Cunningham Industries reported actual sales of $2,000,000, and fixed costs of $510,000.
The ratios are 30%.
Compute the margin of safety in dollars and the margin of safety ratio.
Margin of safety in dollars $...........................
Margin of safety ratio .................... %
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...