d 400 Sales price per unit $550 Variable cost per unit $375 Contribution margin per unit $175 Fixed costs $3,500 Break-even (in units) 20 Contribution margin ratio 31.82% Brea-even (in dollars) 11,000
5. Marshall & Company produces a single product and recently calculated their break-even point as shown.
Current
Units sold 400
Sales price per unit $550
Variable cost per unit $375
Contribution margin per unit $175
Fixed costs $3,500
Break-even (in units) 20
Contribution margin ratio 31.82%
Brea-even (in dollars) 11,000
NOTE #2: Units are whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).
If they required a $14,000 margin of safety:
What would Marshall’s target margin of safety be in units?
What would Marshall’s target margin of safety be in dollars?
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