nufacturing cost $ 22 Fixed manufacturing cost $ 177,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 147,000 per month If Lamar produces and sells 57,000 units, what is the margin of safety in units?

nufacturing cost $ 22 Fixed manufacturing cost $ 177,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 147,000 per month If Lamar produces and sells 57,000 units, what is the margin of safety in units?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

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Question

Lamar has the following data:

Selling price	$ 40
Variable manufacturing cost	$ 22
Fixed manufacturing cost	$ 177,000	per month
Variable selling & administrative costs	$ 6
Fixed selling & administrative costs	$ 147,000	per month

If Lamar produces and sells 57,000 units, what is the margin of safety in units?

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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