Question
A company manufactures and sells a single product for which the variable cost is 12$ and the contribution to sales ratio is 40% The fixed
A company manufactures and sells a single product for which the variable cost is 12$ and the contribution to sales ratio is 40%
The fixed cost is 80000 per year.
They are budgeting for selling 12000 units per year.
What is the margin of safety?
- 400%
- 16.67%
- 20%
- 106%
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
Accounting Information Systems
Authors: James A. Hall
5th Edition
0324312954, 9780324312959
