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Ground Ltd launched their bean to cup coffee machine and hope to go into full production in the forthcoming period, estimating sales of 600 machines.
Ground Ltd launched their bean to cup coffee machine and hope to go into full production in the forthcoming period, estimating sales of 600 machines. Each machine sells for 517 and the cost of manufacture are below:
Direct materials 147
Direct labour 60
Production related fixed costs are 82,725 and marketing fixed costs are 28,875.
Calculate Ground Ltd's margin of safety.
Select one:
a.
56%
b.
40%
c.
125%
d.
67%
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