Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 405 Sales Price per Unit $535 Variable Cost per Unit $380 Contribution Margin per Unit $155 Fixed Costs $4,650 Break-Even (in units) 30 Contribution Margin Ratio 29% Break-Even (in dollars) $16,050 What would Marshall's target margin of safety point be in units and dollars if they required a $13,950 margin of safety? Target margin of safety 160 X units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Marshall & Company produces a single product and recently calculated their break-even point as shown below.
Current
Units Sold
405
Sales Price per Unit
$535
Variable Cost per Unit
$380
Contribution Margin per Unit
$155
Fixed Costs
$4,650
Break-Even (in units)
30
Contribution Margin Ratio
29%
Break-Even (in dollars)
$16,050
What would Marshall's target margin of safety point be in units and dollars if they required a $13,950 margin of safety?
Target margin of safety
160 X units
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Check My Work
Divide the contribution margin per unit into the sum of the fixed costs and margin of safety to determine the break-even units. Multiply the
Check My Work
Transcribed Image Text:eBook Show Me How Print Item Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 405 Sales Price per Unit $535 Variable Cost per Unit $380 Contribution Margin per Unit $155 Fixed Costs $4,650 Break-Even (in units) 30 Contribution Margin Ratio 29% Break-Even (in dollars) $16,050 What would Marshall's target margin of safety point be in units and dollars if they required a $13,950 margin of safety? Target margin of safety 160 X units Feedback Check My Work Divide the contribution margin per unit into the sum of the fixed costs and margin of safety to determine the break-even units. Multiply the Check My Work
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