EA14. 3.5 Marshall & Company produces a single product and recently calculated their break-even point asshown.CurrentUnits soldSales price per unitVariable cost per unitContribution margin per unitFixed costsBreak-even (in units)Contribution margin ratioBreak-even (in dollars)400550375175$ 3,5002031.82%$11,000What would Marshall's target margin of safety be in units and dollars if they required a $14,000 margin ofsafety?%24

Margin of Safety: The break-even point reflects the level of sales volume where no profit or loss is…

EA14. LO 3.5 Marshall & Company produces a single product and recently calculated their break-even point as shown. Current Units sold Sales price per unit Variable cost per unit Contribution margin per unit Fixed costs 400 550 375 175 %24 $ 3,500 Break-even (in units) Contribution margin ratio Break-even (in dollars) 20 31.82% $11,000 What would Marshall's target margin of safety be in units and dollars if they required a $14,000 margin of safety?

EA14. LO 3.5 Marshall & Company produces a single product and recently calculated their break-even point as shown. Current Units sold Sales price per unit Variable cost per unit Contribution margin per unit Fixed costs 400 550 375 175 %24 $ 3,500 Break-even (in units) Contribution margin ratio Break-even (in dollars) 20 31.82% $11,000 What would Marshall's target margin of safety be in units and dollars if they required a $14,000 margin of safety?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 14EA: Marshall s target margin of safety be in units and dollars if they required a $14,000 margin of...

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