Question
Zurbrigg's Marvelous Pinky Rings sells each of it's unique rings at a price of $1500 each. The rings have a variable cost of $600 and
Zurbrigg's Marvelous Pinky Rings sells each of it's unique rings at a price of $1500 each. The rings have a variable cost of $600 and Zurbrigg's Marvelous Pinky Rings has fixed costs of $9000. To breakeven, the company needs to sell 10 units.
a) if Zurbrigg's Marvelous Pinky Rings is budgeted to sell 30 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%)
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