The following is information for the month of October for Smith Company who manufactures ski helmets....

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The following is information for the month of October for Smith Company who manufactures ski helmets....

The following is information for the month of October for Smith Company who manufactures ski helmets. What is the margin of safety in dollars?

	Total	Per Unit
Sales (5,000 helmets)	$300,000	$60
Variable costs	$180,000	$36
Contribution margin	$120,000	$24
Fixed Expenses	$100,000
Operating Income	$20,000

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Answer 1

Answer #1

	Per Unit
Sale Price	60
Variable Cost	36
Contribution Margin	24
Contribution Margin (%)	40%
Fixed Cost	100000
Breakeven Sales ($) [Fixed Cost/ CM (%)	250000
Current Sales	300000
Margin of Safety Sales ($) (Sales - Breakeven Sales)	50000

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Answer 2

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The following is information for the month of October for Smith Company who manufactures ski helmets....

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