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compute margin of safety and margin safety ration Ivanhoe Company estimates that variable costs will be 55% of sales, and fixed costs will total $540,000.

compute margin of safety and margin safety ration
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Ivanhoe Company estimates that variable costs will be 55% of sales, and fixed costs will total $540,000. The unit selling price of the product is $8. (a) Your answer is correct Compute the break-even point in (1) sales units and (2) sales dollars. (Round per unit calculation to 2 decimal places, eg, 15.25 and final answer to O decimal places, eg. 5,275.) (1) Break-even sales 150.000 units 123 Break-even sales $ 1.200.000 Assuming actual sales are $2 milllion, compute the margin of safety (1) in dollars and (2) as a ratio. (1) Margin of safety $ (2) Margin of safety ratio 45 %

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