MC Qu. 165 Flannigan Company manufactures and sells... 005 points Flannigan Company manufactures and sells a single...

Question

Question

Answer 1

Answer #1

Answer : $ 2,200,000

Margin of safety = actual Dollar Sales - BEP Dollar Sales

BEP Dollar Sales = Fixed cost / CM Ratio

CM Ratio = (620-372)/620= 40%

BEP Dollar Sales = 868,000/40% = $2,170,000

Margin of Safety = $4,370,000-2,170,000 = $2,200,000

Answer 2

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