Stereo Stereo Inc. (SSI) has manufactures only one model of Stereo, the Jack. It is known for its high class audio quality and surprising light weight! It comes in red, green, and purple. It is a very good product and was recently endorsed by Madonna. This year, SSI expects to make and sell 21,100 Jacks. It is expected to be a very good year due to the latest fad of people listening to music at home, instead of attending concerts. Fixed administrative costs are expected to total $533,000 and fixed manufacturing costs are expected to total $297,000. Financial information relating to the product for this year is provided below. Financial details per unit: Selling price Variable selling cost Variable overhead cost $494 39 30 Direct labour cost Direct material cost Required: Calculate SSI's expected margin of safety in units for this year. 112 214

Stereo Stereo Inc. (SSI) has manufactures only one model of Stereo, the Jack. It is known for its high class audio quality and surprising light weight! It comes in red, green, and purple. It is a very good product and was recently endorsed by Madonna. This year, SSI expects to make and sell 21,100 Jacks. It is expected to be a very good year due to the latest fad of people listening to music at home, instead of attending concerts. Fixed administrative costs are expected to total $533,000 and fixed manufacturing costs are expected to total $297,000. Financial information relating to the product for this year is provided below. Financial details per unit: Selling price Variable selling cost Variable overhead cost $494 39 30 Direct labour cost Direct material cost Required: Calculate SSI's expected margin of safety in units for this year. 112 214

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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