Question
Margin of Safety (Single Product). Nellie Company has monthly fixed costs totaling $100,000 and variable costs of $20 per unit. Each unit of product is
Margin of Safety (Single Product).Nellie Company has monthly fixed costs totaling $100,000 and variable costs of $20 per unit. Each unit of product is sold for $25 (these data are the same as the previous exercise). Assume Nellie Company expects to sell 24,000 units of product this coming month.
Required:
- Find the margin of safety in units.
- Find the margin of safety in sales dollars.
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Risk-Based Internal Audit
Authors: Jason Lee Mefford
1st Edition
1631922629, 9781631922626
