Marshall & Company produces a single product and recently calculated their break-even point as shown below.   Current Units Sold 410 Sales Price per Unit $515 Variable Cost per Unit $385 Contribution Margin per Unit $130 Fixed Costs $3,250 Break-Even (in units) 25 Contribution Margin Ratio 25% Break-Even (in dollars) $12,875 What would Marshall’s target margin of safety point be in units and dollars if they required a $12,350 margin of safety? Target margin of safety fill in the blank ___ units

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter3: Cost-volume-profit Analysis
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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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Marshall & Company produces a single product and recently calculated their break-even point as shown below.

  Current
Units Sold 410
Sales Price per Unit $515
Variable Cost per Unit $385
Contribution Margin per Unit $130
Fixed Costs $3,250
Break-Even (in units) 25
Contribution Margin Ratio 25%
Break-Even (in dollars) $12,875

What would Marshall’s target margin of safety point be in units and dollars if they required a $12,350 margin of safety?

Target margin of safety fill in the blank ___ units

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