EA14. LO 3.5 Marshall & Company produces a single product and recently calculated their break-even point as shown. Current Units sold Sales price per unit Variable cost per unit Contribution margin per unit Fixed costs Break-even (in units) Contribution margin ratio Break-even (in dollars) 400 550 375 175 $ 3,500 20 31.82% $11,000 What would Marshall's target margin of safety be in units and dollars if they required a $14,000 margin of safety?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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EA14. LO 3.5 Marshall & Company produces a single product and recently calculated their break-even point as
shown.
Current
Units sold
Sales price per unit
Variable cost per unit
Contribution margin per unit
400
550
%24
375
$ 175
$ 3,500
20
Fixed costs
Break-even (in units)
Contribution margin ratio
Break-even (in dollars)
31.82%
$11,000
What would Marshall's target margin of safety be in units and dollars if they required a $14,000 margin of
safety?
Transcribed Image Text:EA14. LO 3.5 Marshall & Company produces a single product and recently calculated their break-even point as shown. Current Units sold Sales price per unit Variable cost per unit Contribution margin per unit 400 550 %24 375 $ 175 $ 3,500 20 Fixed costs Break-even (in units) Contribution margin ratio Break-even (in dollars) 31.82% $11,000 What would Marshall's target margin of safety be in units and dollars if they required a $14,000 margin of safety?
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