Musical Instruments Ltd sells guitars for £550 each. The variable cost per guitar is £150 and the fixed costs for 2019 are £250,000. During 2019, Musical Instruments Ltd sells sufficient guitars to earn a profit of £350,000. What is the Margin of Safety (in units) at this level of sales?

Musical Instruments Ltd sells guitars for £550 each. The variable cost per guitar is £150 and the fixed costs for 2019 are £250,000. During 2019, Musical Instruments Ltd sells sufficient guitars to earn a profit of £350,000. What is the Margin of Safety (in units) at this level of sales?

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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