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Please help Jacob Garzon operates a photography business that takes photographs of teams and players for various youth sports leagues and tournaments. His income statement
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Jacob Garzon operates a photography business that takes photographs of teams and players for various youth sports leagues and tournaments. His income statement for March, when he sold 4,000 photographs, is as follows: Sales revenue $ 80,000 $ 20.00 Less variable expenses Cost of goods sold 20,000 5.00 Salaries and wages expense 8,000 2.00 Postage expense 4,000 1.00 Total variable expenses 32,000 8.00 contribution margin 48,000 $ 12.00 Less fixed expenses Cost of goods sold 4,600 Advertising 600 Salaries and wages expense 10,000 Insurance expense 1,500 Depreciation expense 1,300 Total fixed expenses 18,000 Operating income $ 30,000 Assuming Jacob's breakeven point is 1,500 units, calculate Jacob's margin of safety in units and sales dollars. DO NOT INCLUDE $ IN YOUR ANSWER. Margin of safety units Margin of safety sales dollars $Step by Step Solution
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