Beantown Baseball Company makes baseballs that sell for $13 per two-pack. Current annual production and sales are 576,000 baseballs. Costs for each baseball are as follows: Direct material $2.00 Direct labor $1.25 Variable overhead $0.50 Variable selling expenses $0.25 Total variable cost $4.00 Total fixed overhead $750,000 d. Determine the company’s margin of safety in number of baseballs, in sales dollars, and as a percentage. Margin of safety in baseballs: 276,000 Margin of safety in dollars: $______ Margin of safety percentage: ______%

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Beantown Baseball Company makes baseballs that sell for $13 per two-pack. Current annual production and sales are 576,000 baseballs. Costs for each baseball are as follows:

Direct material $2.00
Direct labor $1.25
Variable overhead $0.50
Variable selling expenses $0.25
Total variable cost $4.00
Total fixed overhead $750,000

d. Determine the company’s margin of safety in number of baseballs, in sales dollars, and as a percentage.

Margin of safety in baseballs: 276,000

Margin of safety in dollars: $______

Margin of safety percentage: ______%

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