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Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 395 Sales Price per Unit
Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 395 Sales Price per Unit $535 Variable Cost per Unit $365 Contribution Margin per Unit $170 Fixed Costs $4,250 Break-Even (in units) 25 Contribution Margin Ratio 32% $13,375 Break-Even (in dollars) What would Marshall's target margin of safety point be in units and dollars if they required a $17,850 margin of safety? Target margin of safety X units Feedback Check My Work Divide the contribution margin per unit into the sum of the fixed costs and margin of safety to determine the break-even units. Multiply those units times the sales price.
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