Question
9(A). Cartman Company makes a Cheezy-poofs that sells for $5 a bag. Each bag has a variable cost of $2. Cartman has a total
9(A). Cartman Company makes a Cheezy-poofs that sells for $5 a bag. Each bag has a variable cost of $2. Cartman has a total fixed costs of $9,000. At budgeted sales of $30,000. What is the margin of safety (in percentage)? 9(B). ABC Corporation recently noticed an decrease in its variable cost. All other costs and revenues were unchanged. What impact will this have on break-even point and the margin of safety (increase, decrease, or stay the same... and why? - feel free to make-up numbers to help explain why. (1) Breakeven: Why: (2) Margin of Safety: Why:
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