Question

Compute the margin of safety and the company margin of safety as a percentage Selling price....

Compute the margin of safety and the company margin of safety as a percentage

Selling price. $25.00 per unit
Variable expense. $13.00 per unit
Fixed expenses. $9.840 per month
Unit sales. $970 unit per month
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Answer #1
MOS
Selling Price 25
Variable Expenses 13
Cotribution 12
Break even point Fixed cost / Contribution per unit 9840/12 = 820
BEP (uts) 820
MOS = 970-820 150 Unnits
MOS % MOS/Projected sales * 100
150/970*100
15.46
or
Selling Price 970*25 24250
BE sales 820*25 20500
MOS 3750
15.46
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