reak-Even in Units and Sales Dollars, Margin of Safety Drake Company produces a single product. Last year's income statement is as follows: Sales (21,000 units) $1,295,700 Less: Variable costs 856,800 Contribution margin $438,900 Less: Fixed costs 250,300 Operating income $188,600 Required: 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar.
reak-Even in Units and Sales Dollars, Margin of Safety Drake Company produces a single product. Last year's income statement is as follows: Sales (21,000 units) $1,295,700 Less: Variable costs 856,800 Contribution margin $438,900 Less: Fixed costs 250,300 Operating income $188,600 Required: 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 59P: Cost-Volume-Profit, Margin of Safety Victoria Company produces a single product. Last years income...
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Break-Even in Units and Sales Dollars, Margin of Safety
Drake Company produces a single product. Last year's income statement is as follows:
| Sales (21,000 units) | $1,295,700 |
| Less: Variable costs | 856,800 |
| Contribution margin | $438,900 |
| Less: Fixed costs | 250,300 |
| Operating income | $188,600 |
Required:
2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar.
$fill in the blank
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