Columbus Industries makes a product that sells for $30 a unit. The product has a $22 per unit variable cost and total fixed costs of $8,800. At budgeted sales of 1,600 units, the margin of safety ratio is:Multiple ChoiceOOOO27.7%36.7%.31.3%.None of these choices are correct.

Break Even Point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Columbus Industries makes a product…

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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Columbus Industries makes a product that sells for $30 a unit. The product has a $22 per unit variable cost and total fixed costs of $8,800. At budgeted sales of 1,600 units, the margin of safety ratio is: Multiple Choice O OO 27.7% 36.7% 31.3% None of these choices are correct.