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%
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%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a7a3fbd-e931-49bd-9345-1a643d111701%2Ff2e25349-f822-4adf-b989-20ab37d99418%2F6qsyxto_processed.jpeg&w=3840&q=75)
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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