Multiple Choice
49.80%.
34.10%.
36.90%.
35.90%.
90.90%.
Ans:
Break even point units =( Fixed cost / Contribution margin per unit)
= ($79,600 / $218)
= 365 units
Break even point in units = 365
Margin of safety sales in units = | Actual sales units - Break even sales units |
Margin of safety sales in units = 580 - 365
= 215
Margin of safety ratio = ( margin of safety units / Actual sales units) *100
= (215 / 580 ) *100
= 36.90
Margin of safety ratio= | 36.90 |
Option C
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