19Cameron Cookiest produces gourmet cookies, which sell for $16 a basket. Variable costs per basket are $6 and fixed costs are $5,000 permonth. If the company expects to sell 1,500 baskets of cookies, what is the margin of safety in dollars?

The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The margin…

Answered: Cameron Cookiest produces gourmet…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cameron Cookiest produces gourmet cookies, which sell for $16 a basket. Variable costs per basket are $6 and fixed costs are $5,00 month. If the company expects to sell 1,500 baskets of cookies, what is the margin of safety in dollars?