Sabrina Inc, sells table for $110. The Unit Variable Cost per table is $85. Fixed Costs Total $475,000. Required: What is the margin of safety, assuming 33,000 tires are sold ?
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Sabrina Inc, sells table for $110. The Unit Variable Cost per table is $85. Fixed Costs Total $475,000.
Required:
What is the margin of safety, assuming 33,000 tires are sold ?
- Contribution Per Unit = Selling Price - Variable Cost = $110 - $85 = $25
- Break even Point = = = 19,000 units
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