Total fixed costs | 2400000 | |
Divide by Unit Contribution margin | 10 | =25-15 |
Break even sales units | 240000 | |
1 | ||
Margin of safety for 20Y8 in unit sold | 160000 | =400000-240000 |
2 | ||
Margin of safety for 20Y8 in sales dollars | 4000000 | =160000*25 |
3 | ||
Margin of safety for 20Y8 as a percentage of sales | 40% | =160000/400000 |
Margin of safety Organic Health Care Products Inc. expects to maintain the same inventories at the end of 20YB as...
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