Question
A company includes a margin of safety when it examines a new product with a cost-volume-profit analysis. The total fixed cost of production is $200,000.
A company includes a margin of safety when it examines a new product with a cost-volume-profit analysis. The total fixed cost of production is $200,000. If the unit selling price is $80, the unit variable cost is $60, and budgeted revenue is $1,040,000, what is the margin of safety in units?
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
