Wang Co. manufactures and sells a single product that sells for $620 per unit; variable costs are $372 per unit. Annual fixed costs are $868,000. Current sales volume is $4,370,000. Compute the current margin of safety in dollars.

Wang Co. manufactures and sells a single product that sells for $620 per unit; variable costs are $372 per unit. Annual fixed costs are $868,000. Current sales volume is $4,370,000. Compute the current margin of safety in dollars.

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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Question

Wang Co. manufactures and sells a single product that sells for $620 per unit; variable costs are $372 per unit. Annual fixed costs are $868,000. Current sales
volume is $4,370,000. Compute the current margin of safety in dollars.

Multiple Choice
$1,649,200.
$2,200,000.
$3,211,710.
$2,170,000.
$2,864,400.

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