Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 400 Sales Price per Unit $515 Variable Cost per Unit $365 Contribution Margin per Unit $150 Fixed Costs $4,500 Break-Even (in units) 30 Contribution Margin Ratio 29% Break-Even (in dollars) $15,450 What would Marshall's target margin of safety point be in units and dollars if they required a $13,500 margin of safety? Target margin of safety x units Feedback V 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 those units times the sales price.

Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 400 Sales Price per Unit $515 Variable Cost per Unit $365 Contribution Margin per Unit $150 Fixed Costs $4,500 Break-Even (in units) 30 Contribution Margin Ratio 29% Break-Even (in dollars) $15,450 What would Marshall's target margin of safety point be in units and dollars if they required a $13,500 margin of safety? Target margin of safety x units Feedback V 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 those units times the sales price.

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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