Question
A company manufactures cell phone cases. The selling price per case is $20 with a variable cost per unit of $10. The forecasted sales for
A company manufactures cell phone cases. The selling price per case is $20 with a variable cost per unit of $10. The forecasted sales for the year are $400,000. Related costs are shown below.
Depreciation $35,000
Fixed Overhead 40,000
Fixed Admin 65,000
Fixed Selling 20,000
What is the margin of safety?
a) 7,500 units
b) 26,000 units
c) 6,000 units
d) 4,000 units
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Corporate Finance, European Edition
Authors: Peter Moles, Robert Parrino, David S. Kidwell
1st Edition
0470683708, 9780470683705
