Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear Total fixed costs per month Variable cost per bear $31.50 1,729.00 18.50 Required: If she sells 289 bears next month, determine the margin of safety in units, in sales dollars, and as a percentage of sales. Note: Round your intermediate calculations to the nearest whole number and round your "Percentage of Sales" answer to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%. Round your "Margin of safety (Dollars)" answer to the nearest whole number.) Margin of safety (Units) Margin of safety (Dollars) Margin of safety percentage %
Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear Total fixed costs per month Variable cost per bear $31.50 1,729.00 18.50 Required: If she sells 289 bears next month, determine the margin of safety in units, in sales dollars, and as a percentage of sales. Note: Round your intermediate calculations to the nearest whole number and round your "Percentage of Sales" answer to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%. Round your "Margin of safety (Dollars)" answer to the nearest whole number.) Margin of safety (Units) Margin of safety (Dollars) Margin of safety percentage %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Heather Hudson makes stuffed teddy bears. Recent information for her business follows:
Selling price per bear
Total fixed costs per month
Variable cost per bear
$31.50
1,729.00
18.50
Required:
If she sells 289 bears next month, determine the margin of safety in units, in sales dollars, and as a percentage of sales.
Note: Round your intermediate calculations to the nearest whole number and round your "Percentage of Sales" answer to 2
decimal places. (i.e. 0.1234 should be entered as 12.34%. Round your "Margin of safety (Dollars)" answer to the nearest whole
number.)
Margin of safety (Units)
Margin of safety (Dollars)
Margin of safety percentage
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfd95f9b-95c3-4db4-b976-a39511e44c8d%2Fb8323547-9702-415a-8a94-3e42edc18907%2F6tzlacd_processed.png&w=3840&q=75)
Transcribed Image Text:Heather Hudson makes stuffed teddy bears. Recent information for her business follows:
Selling price per bear
Total fixed costs per month
Variable cost per bear
$31.50
1,729.00
18.50
Required:
If she sells 289 bears next month, determine the margin of safety in units, in sales dollars, and as a percentage of sales.
Note: Round your intermediate calculations to the nearest whole number and round your "Percentage of Sales" answer to 2
decimal places. (i.e. 0.1234 should be entered as 12.34%. Round your "Margin of safety (Dollars)" answer to the nearest whole
number.)
Margin of safety (Units)
Margin of safety (Dollars)
Margin of safety percentage
%
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