Artisan Works is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen, and collectors. The data are as follows:
Sales price per unit |
$780 |
Variable cost per unit |
470 |
Fixed costs per month |
8,370 |
If Artisan expects to sell 60 units per month, what is his margin of safety expressed in units per month?
Contribution margin=Sales-Variable cost
=(780-470)=$310 per unit
Breakeven=Fixed expenses/Contribution margin
=(8370/310)=27 units
Margin of safety=Total sales-Breakeven sales
=(60-27)
=33 units
Artisan Works is owned and operated by a craftsman who makes replicas of historic firearms for...
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Required
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(Round your answer to 2 decimal places (i.e., .2345 should
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Margin of safety
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