Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 390 Sales Price per Unit $525
Marshall & Company produces a single product and recently calculated their break-even point as shown below.
| Current | |
| Units Sold | 390 |
| Sales Price per Unit | $525 |
| Variable Cost per Unit | $375 |
| Contribution Margin per Unit | $150 |
| Fixed Costs | $3,750 |
| Break-Even (in units) | 25 |
| Contribution Margin Ratio | 29% |
| Break-Even (in dollars) | $13,125 |
What would Marshalls target margin of safety point be in units and dollars if they required a $16,500 margin of safety?
Target margin of safety units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started