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Zhao Company has fixed costs of $342,200. Its single proc company expects sales of 10,000 units, compute its margir X Answer is complete but not entirely correct. a. Margin of safety (in dollar) $5,900 X b. Margin of safety (%) 41%

Zhao Company has fixed costs of $342,200. Its single proc company expects sales of 10,000 units, compute its margir X Answer is complete but not entirely correct. a. Margin of safety (in dollar) $5,900 X b. Margin of safety (%) 41%

FINANCIAL ACCOUNTING
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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QS 18-18 (Algo) Zhao Company has fixed costs of $342,200. Its single product sells for $173 per unit, and variable costs are $115 per unit. If the company expects sales of 10,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. X Answer is complete but not entirely correct. a. Margin of safety (in dollar) $ 5,900 x b. Margin of safety (%) 41%
Transcribed Image Text:QS 18-18 (Algo) Zhao Company has fixed costs of $342,200. Its single product sells for $173 per unit, and variable costs are $115 per unit. If the company expects sales of 10,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. X Answer is complete but not entirely correct. a. Margin of safety (in dollar) $ 5,900 x b. Margin of safety (%) 41%
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