Assume that Bene Petit sells only family-sized meals and that the average price is $5.00 per serving. Variable manufacturing costs are $1.75 per serving for customer meals and $0.75 per serving for donated meals. Variable delivery expenses are $2.00 per customer delivery (with an average order size of four meals or 16 servings in each delivery). Variable delivery expenses for donated meals are $200 per delivery, with an average of 1,000 donated meals or 4,000 servings in each delivery. Other variable selling expenses are $0.30 per customer meal sold. Total fixed costs are $144,000. If Taylor expects to sell 25,000 customer meals next year, what is its margin of safety in total sales dollars?
Assume that Bene Petit sells only family-sized meals and that the average price is $5.00 per serving. Variable
If Taylor expects to sell 25,000 customer meals next year, what is its margin of safety in total sales dollars?
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