Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 410 Sales Price per Unit $515 Variable Cost per Unit $385 Contribution Margin per Unit $130 Fixed Costs $3,250 Break-Even (in units) 25 Contribution Margin Ratio 25% Break-Even (in dollars) $12,875 What would Marshall’s target margin of safety point be in units and dollars if they required a $12,350 margin of safety? Target margin of safety fill in the blank ___ units
Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 410 Sales Price per Unit $515 Variable Cost per Unit $385 Contribution Margin per Unit $130 Fixed Costs $3,250 Break-Even (in units) 25 Contribution Margin Ratio 25% Break-Even (in dollars) $12,875 What would Marshall’s target margin of safety point be in units and dollars if they required a $12,350 margin of safety? Target margin of safety fill in the blank ___ units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Marshall & Company produces a single product and recently calculated their break-even point as shown below.
| Current | |
| Units Sold | 410 |
| Sales Price per Unit | $515 |
| Variable Cost per Unit | $385 |
| Contribution Margin per Unit | $130 |
| Fixed Costs | $3,250 |
| Break-Even (in units) | 25 |
| Contribution Margin Ratio | 25% |
| Break-Even (in dollars) | $12,875 |
What would Marshall’s target margin of safety point be in units and dollars if they required a $12,350 margin of safety?
Target margin of safety fill in the blank ___ units
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