A company manufactures cell phone cases. The selling price per case is $20 with a variable...
A company manufactures cell phone cases. The selling price per case is $20 with a variable cost per unit of $10. The forecasted sales for the year are $400,000. Related costs are shown below.
Depreciation $35,000
Fixed Overhead 40,000
Fixed Admin 65,000
Fixed Selling 20,000
What is the margin of safety?
a) 7,500 units
b) 26,000 units
c) 6,000 units
d) 4,000 units
Homework Answers
d) 4,000 units
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A company manufactures cell phone cases. The selling price per
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