Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Selling price from each window installation $600 Variable cost of each window installation $500 Annual fixed costs $160,000 Bennett Windows is a small company that
Selling price from each window installation
$600
Variable cost of each window installation
$500
Annual fixed costs
$160,000
Bennett Windows is a small company that installs windows. Its cost structure is as follows: (Click the icon to view the cost structure.) Bennett Windows' breakeven revenues is $960,000 and breakeven units is 1,600. Calculate the margin of safety in units and dollars and the margin of safety percentage if Bennett Windows expects to sell 3,600 windows in the year. Begin with calculating the margin of safety in dollars. Determine the formula to calculate the margin of safety in dollars. Then, enter the amounts and calculate the margin of safety in dollars. Margin of safety in dollars Next, determine the formula, enter the amounts, and calculate the margin of safety in units. Margin of safety in units - Finally, calculate the margin of safety percentage if Bennett Windows expects to sell 3,600 windows in the year. Select the formula labels, then enter the amounts and calculate the margin of safety percentage. (Round your final percentage to one decimal place, X.X%) Margin of safety percentage % = Choose from any list or enter any number in the input fields and then continue to the nextStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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