Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can Di B eBook * Show Me How Calculator Print Item Margin of Safety Head-First Company plans to sell 5,000 bicycle helmets at $75 each
can Di B eBook * Show Me How Calculator Print Item Margin of Safety Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense) Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 1650. Unless otherwise instructed, round all total dollar figures (e.g., sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. Required: 1. Calculate the margin of safety in terms of the number of units units 2. Calculate the margin of safety in terms of sales revenue. Check My Work Save and Edit Submit Asia tore
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