Question
Zurbrigg's Marvelous Pinky Rings sells each of it's unique rings at a price of $900 each. The rings have a variable cost of $400 and
Zurbrigg's Marvelous Pinky Rings sells each of it's unique rings at a price of $900 each. The rings have a variable cost of $400 and Zurbrigg's Marvelous Pinky Rings has fixed costs of $18000. To breakeven, the company needs to sell 36 units.
a) if Zurbrigg's Marvelous Pinky Rings is budgeted to sell 75 rings, what is the margin of safety? (please don't include $ or commas or decimal points i.e. use 2000 not $2,000.00)
Your answer is $
b) Using the information above, what is the Margin of Safety Percentage? (please don't include % or decimals i.e. use 20 not 20.22%)
Your answer is %
Step 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