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 $375 Contribution Margin per Unit $160 Fixed Costs $3,200 Break-Even (in units) 20 Contribution Margin Ratio 30% Break-Even (in dollars) $10,700 What would Marshall’s target margin of safety point be in units and dollars if they required a $18,400 margin of safety?

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 $375 Contribution Margin per Unit $160 Fixed Costs $3,200 Break-Even (in units) 20 Contribution Margin Ratio 30% Break-Even (in dollars) $10,700 What would Marshall’s target margin of safety point be in units and dollars if they required a $18,400 margin of safety?

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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bartleby, a Learneo, Inc. business

	Current
Units Sold	405
Sales Price per Unit	$535
Variable Cost per Unit	$375
Contribution Margin per Unit	$160
Fixed Costs	$3,200
Break-Even (in units)	20
Contribution Margin Ratio	30%
Break-Even (in dollars)	$10,700