David Hamman sells organic vegetable boxes, which cost on average 4.80, for an average price of 8.

Question:

David Hamman sells organic vegetable boxes, which cost on average £4.80, for an average price of £8. The fixed costs of his business are £26,800 per year. He is currently selling 10,000 boxes per year. Based on these data, calculate the following:

i. break-even level in number of boxes;

ii. margin of safety in output;

iii. margin of safety as a percentage of current sales.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: