Exercise 3-8A (Algo) Target costing LO 3-2 The marketing manager of Finch Corporation has determined that a market exists for a telephone with a sales price of $22 per unit. The production manager estimates the annual fixed costs of producing between 41,700 and 81,800 telephones would be $451,600. Required Assume that Finch desires to earn a $122,000 profit from the phone sales. How much can Finch afford to spend on variable cost per unit if production and sales equal 47,800 phones? Variable cost per unit Exercise 3-11A (Static) Margin of safety LO 3-4 Owen Company makes a product that sells for $61 per unit. The company pays $37 per unit for the variable costs of the product and incurs annual fixed costs of $360,000. Owen expects to sell 20,000 units of product. Required Determine Owen's margin of safety expressed as a percentage. Margin of safety %