1. A company makes a single product which it sells for $2 per unit. Fixed costs are $13,000 per month. The contribution/sales ratio is 40%. Sales revenue is $62,500. What is the margin of safety (in units)?
1. A company makes a single product which it sells for $2 per unit. Fixed costs are $13,000 per month. The contribution/sales ratio is 40%. Sales revenue is $62,500. What is the margin of safety (in units)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. A company makes a single product which it sells for $2 per unit. Fixed costs are $13,000 per
month. The contribution/sales ratio is 40%. Sales revenue is $62,500.
What is the margin of safety (in units)?
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