Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company makes a single product, which sells for $ 24 per unit. Fixed costs are $ 32,000 per month, and the contribution margin is

A company makes a single product, which sells for $ 24 per unit. Fixed costs are $ 32,000 per month, and the contribution margin is 0.3 (30%). Sales for the month were $ 132 000. What is the margin of safety in sales units?

Step by Step Solution

3.40 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the margin of safety in sales units we first need to calculate the breakeven ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Business Reporting For Decision Making

Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver

6th Edition

978-0730363415, 0730363414

More Books

Students also viewed these Accounting questions