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Suzanne sells authentic Amish quilts on her website. Suppose Suzanne expects to sell 1,400 quilts during the coming year. Her average sales price per quilt
Suzanne sells authentic Amish quilts on her website. Suppose Suzanne expects to sell 1,400 quilts during the coming year. Her average sales price per quilt is $300, and her average cost per quilt is $100. Her fixed expenses total $210,000. Compute her margin of safety a. in units (quilts). b. in sales dollars c. as a percentage of expected sales. .... a. Compute her margin of safety in units (quilts). Begin by determining the formula, then compute the margin of safety in units (quilts). Expected sales in units Breakeven sales in units Margin of safety in units 1.400 1,050 350 b. Compute her margin of safety in sales dollars. Begin by determining the formula, then compute Suzanne's margin of safety in sales dollars. Expected sales in dollars Breakeven sales in dollars Margin of safety in dollars $ 420.000
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