Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company has the following infomration available for two prducts: Product A Product B Sales $ 100,000 $ 400,000 variable costs $ 40,000 $ 190,000
| A company has the following infomration available for two prducts: | ||||
| Product A | Product B | |||
| Sales | $ 100,000 | $ 400,000 | ||
| variable costs | $ 40,000 | $ 190,000 | ||
| Contribution Margin | $ 60,000 | $ 210,000 | ||
| Fixed Costs | $ 40,000 | $ 170,000 | ||
| Net Income | $ 20,000 | $ 40,000 | ||
| What is the margin of saftey for product B? | ||||
| $ 76,190 | ||||
| $ 210,000 | ||||
| $ 70,290 | ||||
| $ 40,000 | ||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting Plus
Authors: Robert Libby, Patricia Libby, Daniel Short
7th Edition
0077480015, 9780077480011
