The vice-president of sales and marketing. Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecast sales. The board of directors is very supportive of any initiatives that will lead to increased operating income for the company in the upcoming year. Waterways markets a simple water controller and timer that it mass-produces. During 2022, the company sold 322.500 units at an average selling price of $8.00 per unit. The variable costs were $1,193,250. and the fixed costs were $606,300.
The vice-president of sales and marketing. Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecast sales. The board of directors is very supportive of any initiatives that will lead to increased operating income for the company in the upcoming year. Waterways markets a simple water controller and timer that it mass-produces. During 2022, the company sold 322.500 units at an average selling price of $8.00 per unit. The variable costs were $1,193,250. and the fixed costs were $606,300.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The vice-president of sales and marketing, Madison Tremblay, is trying to plan for the coming year in terms of production needs to
meet the forecast sales. The board of directors is very supportive of any initiatives that will lead to increased operating income for the
company in the upcoming year.
Waterways markets a simple water controller and timer that it mass-produces. During 2022. the company sold 322.500 units at an
average selling price of $8.00 per unit. The variable costs were $1,193,250. and the fixed costs were $606,300.
What is the margin of safety, both in dollars and as a ratio? (Round ratio to 2 decimal places, e.g. 25.25%)
$
Margin of safety in dollars
Margin of safety ratio
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