Question
EA14.Marshall & Company produces a single product and recently calculated their break-even point as shown. Current Units sold 400 Sales price per unit Variable
EA14.Marshall & Company produces a single product and recently calculated their break-even point as shown. Current Units sold 400 Sales price per unit Variable cost per unit $ 550 $ 375 Contribution margin per unit Fixed costs $ 175 $ 3,500 Break-even (in units) 20 Contribution margin ratio 31.82% Break-even (in dollars) $11,000 What would Marshall's target margin of safety be in units and dollars if they required a $14,000 margin of safety?
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Management and Cost Accounting
Authors: Colin Drury
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