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APPLY THE CONCEPTS: Margin of Safety Margin of safety can allowr you to see how much padding there is for your company between profit and
APPLY THE CONCEPTS: Margin of Safety Margin of safety can allowr you to see how much padding there is for your company between profit and loss. If this number is great, it may indicate that your company is performing very well. If this number is small, it may be worth looking into possible remediation. Consider the following pricing and cost information: Price and Cost Information Amount Selling Price per Unit $400 Variable Cost per Unit $325 Total Fixed Cost $45,000 For the upcoming period, the company projects that it will sell 1,000 units. Considering that the company has a unit breakeven point of 600 units, what is the margin of safety in terms of both units and sales revenue? Round your answers to two decimal places, if necessary. Margin of Safety in Units =[ 1,000] v' -[ 600] v' =[ 400] V' Margin of Safety in Sales Revenue = $[ ] $[ ] = $[ ]
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