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i need these 3 answers with the numbers provided Margin of Safety Comer Company produces and sets strings of colorfut indoor/outdoor lights for holiday display
i need these 3 answers with the numbers provided
Margin of Safety Comer Company produces and sets strings of colorfut indoor/outdoor lights for holiday display to retailers for $11.89 per string. The variable costs per string are as follows: Direct materials $1.87 1.70 0.57 Direct labor Variable factory overhead Varsable seting expense Fixed manufacturing cost totals $492,576 per year. Administrative cost (all fixed) totals $334,248. Comer expects to sell 197,300 strings of light next year 0.42 Required: 1. Calculate the break-even point in units. X units 2. Calculate the margin of safety in units. X units 3. Calculate the margin of safety in dollars. 4. Conceptual Connection Suppose Comer actually experiences a price decrease next year while all other costs and the number of units sold remain the same. Would this increase or decrease is for the company? (Hint: Consider what would happen to the number of break-even units and to the margin of safety) Step by Step Solution
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