Question 2 The Crane Company sells sports decals that can be personalized with a player’s name,...
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Homework Answers
Answer:
Margin of Safety ( in Dollars) = $6,667
Margin of Safety ( in Units ) = 1,111 units
Explanation:
Given,
Break-even point (in units ) = 889 units
Break-even sales = $5333
Current Sales = Total sales ÷ Selling price per unit
= 12,000 ÷ 6
= 2,000 units
Margin of safety in Dollars =
Current sales in Dollars - Break-even sales in Dollars
= $12,000 - $5,333
= $6,667
Margin of safety in units =
Current sales units - Break-even sales units
= 2,000 - 889
= 1111 units
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Question 2
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