Stuart Company makes a product that sells for $35 per unit. The company pays $24 per unit for the variable costs of the product and incurs annual fixed costs of $96,800. Stuart expects to sell 21,500 units of product. Required Determine Stuart’s margin of safety expressed as a percentage. (Round your percentage answers
Stuart Company makes a product that sells for $35 per unit. The company pays $24 per unit for the variable costs of the product and incurs annual fixed costs of $96,800. Stuart expects to sell 21,500 units of product. Required Determine Stuart’s margin of safety expressed as a percentage. (Round your percentage answers
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Stuart Company makes a product that sells for $35 per unit. The company pays $24 per unit for the variable costs of the product and incurs annual fixed costs of $96,800. Stuart expects to sell 21,500 units of product.
Required
Determine Stuart’s margin of safety expressed as a percentage. (Round your percentage answers to 2 decimal places (i.e., 0.2345 should be entered as 23.45).)
![Margin of safety
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5fa70c8e-c2c0-4088-8b85-2c424d967865%2F906747dc-8fed-4615-82c9-8ab6a5a45786%2F1x2rsw_processed.png&w=3840&q=75)
Transcribed Image Text:Margin of safety
%
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