A company currently sells 400 units at a sales price of $300. Its contribution margin is 40%, and its fixed cost is $30,000. What is its Margin of Safety?

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter5: Activity-based Costing And Management
Section: Chapter Questions
Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...
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A company currently sells 400 units at a sales price of $300. Its contribution margin is 40%, and its
fixed cost is $30,000.
What is its Margin of Safety?
Transcribed Image Text:A company currently sells 400 units at a sales price of $300. Its contribution margin is 40%, and its fixed cost is $30,000. What is its Margin of Safety?
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