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Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of
Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayakdivision, They have provided the following production and operational costs necessary to produce one composite kayak. Bill and Diane have asked you to provide a cost-volume profit analysis, to help them finalize the budget projections for the upcoming year. Bill has informed you that the selling price of the composite kayak will be $2.100. Based on the most recent sales forecast, Current Designs expects to sell 975 units of this model. Calculate the margin of safety in dollars and the margin of safety ratio. (Round percentoge to 2 decimal ploces, 25.50\%) Margin of safety Margin of safety ratio 5 %
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