assume a sales volume of 5160 units selling price of $14 , unit variable cost of...
assume a sales volume of 5160 units selling price of $14 , unit variable cost of $6 and total fixed costs of $17200 what is the margin of safety in units?
Homework Answers
Answer:
Current Sales Units = 5,160 units
Contribution Margin per unit = Selling
price per unit – Variable cost per unit
Contribution Margin per unit = $14 - $6
Contribution Margin per unit = $8
Break Even Point in Units = Fixed Cost
/ Contribution Margin per unit
Break Even point in Units = $17,200 / $8
Break Even point in units = 2,150 units
Margin of Safety in Units = Current
sales Units – Break Even point in units
Margin of Safety in Units = 5,160 – 2,150
Margin of Safety in Units = 3,010 units
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assume a sales volume of 5160 units selling price of $14 , unit
variable cost of...
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