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ABC corp has 2 plants to produce a single product that sells for a single price: $153. Variable manufacturing costs at plant A is 75
ABC corp has 2 plants to produce a single product that sells for a single price: $153. Variable manufacturing costs at plant A is 75 whereas plant B is 86. Fixed manufacturing costs per unit are 32 for plant A and 14 for plant B. Variable marketing costs are 13 for plant A and 13 for plant B whereas fixed distribution costs per unit are 18 and 19 for plants A and B respectively. Total capacity for each plant is 400 units per day and 320 units per day for plants A & B respectively. The normal number of workdays for both plants is 240 days, but they can expand to 300 days if they use overtime, which increases variable manufacturing cost per unit by $3 at plant A, and $8 for plant B. All fixed cost per unit calculations are based on a normal capacity of 240 days. What is the margin of safety (based on normal days at capacity and no changes to inventory), in percent, for plant A
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