Question
12:49 63 CamScan...23 12.48(1) Word b. Assuming that the company sells 30,000 units during the current year, compute the margin of safety (in dollars). Guthrie
12:49 63 CamScan...23 12.48(1) Word b. Assuming that the company sells 30,000 units during the current year, compute the margin of safety (in dollars). Guthrie Industries manufactures and sells dog collars. The collars sell for $12 each. Information about the company's costs is as follows. Variable manufacturing cost per unit $ 2 Variable selling and administrative cost per unit 1 Fixed manufacturing overhead per month $250,000 Fixed selling and administrative cost per month 200,000 Chapter 20 Cost-Volume-Profit Analysis c. Compute the company's margin of safety if its current monthly sales level is $1,400,000. d. Estimate the amount by which monthly operating income will increase if Guthrie anticipates a $60,000 increase in monthly sales volume. Collage Con
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