Question

Bonita Corporation produces only one product. Monthly data includes selling price per unit. 546 unit variable expenses $18 total foed expenses. 58904, actual sales for the month of June, 4240 units. What is the margin of safety 589040 5147552 $58512 O $1272 Attems of used to MacBook Air BE NO 6 7 B 9 à E W R т Y U ta А J S D F G K H CA ? N х с B N M < COM option contro option command

Answer 1

Contribution margin=Sales-Variable cost  

=(46-16)=$30 per unit

Breakeven=Fixed expenses/Contribution margin

=89040/30

=2968 units

Margin of safety=Total sales-Breakeven sales

=4240-2968

=1272 units

=(1272*46)

=$58512