Matthew's small business can produce up to 1,000 units. He looks at his profit information from the past year and notes the following: sales of $5,440, variable cost per unit of $6, fixed costs of $800, and operating income of $560. What was Matthew's sales volume last year? Sales volume What is the company's relevant range? Relevant range Margin of safety in units Determine the margin of safety in both units and sales dollars. Margin of safety in dollars $ 680 units LA 0 to 170 1360 units 1000 units
Matthew's small business can produce up to 1,000 units. He looks at his profit information from the past year and notes the following: sales of $5,440, variable cost per unit of $6, fixed costs of $800, and operating income of $560. What was Matthew's sales volume last year? Sales volume What is the company's relevant range? Relevant range Margin of safety in units Determine the margin of safety in both units and sales dollars. Margin of safety in dollars $ 680 units LA 0 to 170 1360 units 1000 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Matthew's small business can produce up to 1,000 units. He looks at his profit information from the past year and notes the following:
sales of $5,440, variable cost per unit of $6, fixed costs of $800, and operating income of $560.
What was Matthew's sales volume last year?
Sales volume
What is the company's relevant range?
Relevant range
Margin of safety in units
Determine the margin of safety in both units and sales dollars.
Margin of safety in dollars
$
680 units
GA
0 to
170
1360
units
1000 units
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