Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 400 Sales Price per Unit $515 Variable Cost per Unit $365 Contribution Margin per Unit $150 Fixed Costs $4,500 Break-Even (in units) 30 Contribution Margin Ratio 29% Break-Even (in dollars) $15,450 What would Marshall's target margin of safety point be in units and dollars if they required a $13,500 margin of safety? Target margin of safety x units
Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 400 Sales Price per Unit $515 Variable Cost per Unit $365 Contribution Margin per Unit $150 Fixed Costs $4,500 Break-Even (in units) 30 Contribution Margin Ratio 29% Break-Even (in dollars) $15,450 What would Marshall's target margin of safety point be in units and dollars if they required a $13,500 margin of safety? Target margin of safety x units
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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